Senator Reverend Warnock Urges Biden Administration to Investigate Potential Hamas, Hezbollah Crypto Financing » Reverend Raphael Warnock

Senator Reverend Warnock penned a bipartisan request to the Treasury Department urging quick investigation and halting of the illicit utilization of cryptocurrency by Hamas, the Palestinian Islamic Jihad (PIJ), and Hezbollah for money laundering and financing of their terrorist operations

Earlier this week, Senator Warnock was an authentic cosponsor of a bipartisan decision that expresses solidarity with Israel within the wake of the unprovoked Hamas terrorist assaults

Senator Reverend Warnock and lawmakers:“That the deadly attack by Hamas and its affiliates on Israeli civilians comes as the group has become ‘one of the most sophisticated crypto users in the terror-finance domain’ clarifies the national security threat crypto poses to the U.S., and our allies. Congress and this Administration must take strong action to thoroughly address crypto illicit finance risks before it can be used to finance another tragedy”

Washington, D.C. – Today, U.S. Senator Reverend Raphael Warnock (D-GA) urged the Treasury Department and White House  to analyze and halt the illicit utilization of cryptocurrency by Hamas, the Palestinian Islamic Jihad (PIJ), and Hezbollah for money laundering and financing of their operations, together with the recent terrorist assaults on Israel by Hamas. The letter reaffirms American assist for serving to Israel fight terrorism and can be signed by Senators Elizabeth Warren (D-MA) and Roger Marshall (R-KS).

“We write to express our grave concern regarding reports that, in the months leading up to their brutal and horrific October 7th attack on Israel, Hamas and Palestinian Islamic Jihad (PIJ) raised millions of dollars in crypto – evading U.S. sanctions and funding their operations,” wrote Senator Warnock and lawmakers.

Given the clear and current hazard posed by the financing of those and different militant organizations, we ask the Administration to supply extra particulars on its plan to stop using crypto for the financing of terrorism,” continued Senator Warnock and lawmakers.

Senator Warnock and the lawmakers: “That the deadly attack by Hamas and its affiliates on Israeli civilians comes as the group has become ‘one of the most sophisticated crypto users in the terror-finance domain’ clarifies the national security threat crypto poses to the U.S., and our allies. Congress and this Administration must take strong action to thoroughly address crypto illicit finance risks before it can be used to finance another tragedy. As Congress considers legislative proposals designed to mitigate crypto money laundering and illicit finance risks, we urge you to swiftly and categorically act to meaningfully curtail illicit crypto activity and protect our national security and that of our allies.”

On Tuesday, October 10^th, Senator Warnock issued a assertion condemning Hamas’ attack saying, “The heinous acts of violence visited upon the people of Israel by Hamas—mothers, children, and seniors, including American citizens—were horrific and are rightly condemned by all who believe in human dignity and seek a lasting peace. What these events make clear is that there are those who fear peace and seek to sabotage it at any cost. We must not let them win.”

Senator Warnock has labored to bolster the United States’ dedication to Israel. Earlier this week, Senator Warnock was an authentic cosponsor of a bipartisan decision which expresses solidarity with Israel within the wake of the unprovoked Hamas terrorist assaults. Over the summer season, he attended Israeli President Isaac Herzog’s speech to a joint session of Congress and reaffirmed his dedication to carry Israel and America nearer collectively. In June 2022, Senator Warnock was part of a bipartisan group of 34 Senators urging the Biden Administration to keep up the United States Security Coordinator (USSC) position on the three-star rank with the intention to keep stability in Israel and the West Bank. Senator Warnock was additionally a cosponsor to a decision recognizing Israeli-American tradition and heritage and the contributions of the Israeli-American group to the United States.

The letter will be discovered right here and beneath:

We write to specific our grave concern relating to reviews that, within the months main as much as their brutal and horrific October 7^th attack on Israel, Hamas and Palestinian Islamic Jihad (PIJ) raised thousands and thousands of {dollars} in crypto – evading U.S. sanctions and funding their operations. Indeed, between August 2021 and this previous June, the 2 teams raised over $130 million in crypto, and moved thousands and thousands amongst one another, “with PIJ sending over $12 million in crypto to Hezbollah since 2023. As the Wall Street Journal reports, “[r]esearchers who study Hamas’s financing said crypto remains one of a number of tools the group uses to raise funds.” Given the clear and current hazard posed by the financing of those and different militant organizations, we ask the Administration to supply extra particulars on its plan to stop using crypto for the financing of terrorism.

On the morning of October 7^th, Hamas militants fired an estimated 2,200 rockets in direction of Israel, as lots of of militants entered Israel on bikes and motorboats. As of October 11, 2023, over 1,200 folks have died in Israel because of the assaults, and a pair of,900 have been wounded. While “[i]t couldn’t be determined whether the crypto they received was directly used to finance the assault,” Hamas has been clear in its solicitations for crypto in regards to the supposed use of the belongings. As the group stated in a Telegram put up asking for bitcoin, “[t]he reality of jihad is the expenditure of effort and energy, and money is the backbone of war.”

Both the Israeli and U.S. governments have warned of the risk that crypto poses within the combat towards terrorism. As Israeli Defense Minister Yoav Gallant confused in June 2023, digital currencies like bitcoin make the work of halting and stopping the financing of terrorism harder. The Israeli authorities has seized crypto belongings from terrorist organizations – together with Hamas and Hezbollah – earlier than. As lately as August 2023, the nation’s National Bureau for Counter-Terror Financing ordered the seizure of 67 PIJ-owned accounts with Binance, the world’s largest crypto change. Despite these and different seizures, consultants consider that solely “a small percentage of the overall amount of funds that flowed through” Hamas and PIJ wallets has been seized.

That the lethal attack by Hamas and its associates on Israeli civilians comes because the group has change into “one of the most sophisticated crypto users in the terror-finance domain”  clarifies the nationwide safety risk crypto poses to the U.S., and our allies. Congress and this Administration should take robust motion to completely tackle crypto illicit finance dangers earlier than it may be used to finance one other tragedy. As Congress considers legislative proposals designed to mitigate crypto money laundering and illicit finance dangers, we urge you to swiftly and categorically act to meaningfully curtail illicit crypto exercise and shield our nationwide safety and that of our allies.

We due to this fact request solutions to the next questions relating to Treasury’s plans to deal with the intense nationwide safety threats posed by means of cryptocurrency to finance terrorism no later than October 31, 2023:

1. What steps is the Biden Administration taking to deal with using cryptocurrency by terrorist organizations, together with however not restricted to Hamas, PIJ, and Hezbollah?
2. Reports point out that Hamas and PIJ collectively raised over $130 million in crypto between August 2021 and June 2023. Is this in keeping with the Administration’s estimates? Does the Administration have an estimate of the worth of crypto belongings remaining in wallets managed by these teams?
3. What challenges does the Administration face in arresting the success of teams like Hamas in elevating funds through cryptocurrency? How is it addressing these challenges?
4. Reports recommend that PIJ held crypto accounts at Binance, and that PIJ “primarily used the stablecoin tether” to transact.
   1. What info does the Administration have about which actors are facilitating the sending and change of digital belongings to and between terrorist organizations like Hamas, PIJ, and Hezbollah?
   2. Which actors are facilitating the change of cryptocurrency for different belongings, together with these exchanged for weapons?
   3. Where are these actors based mostly?
   4. What actions has the Administration taken towards these actors?
5. What extra statutory instruments does the Administration want to deal with the nationwide safety threats posed by illicit use of crypto by terrorist organizations?
6. What extra assets does the Administration want to deal with the nationwide safety threats posed by illicit use of crypto by terrorist organizations?

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