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Unraveling Crypto’s Role in Global Terrorist Financing

Crypto | Oct 18, 2023

Unsplash Robert Linder US Treasury - Unraveling Crypto's Role in Global Terrorist Financing

Image: Unsplash/Robert Linder

Recent events have brought to light the intricate web of financing that supports Hamas, a designated terrorist organization.

Elizabeth Warren's Advocacy

Senator Elizabeth Warren has intensified her campaign against crypto crime. She, along with 28 other senators and 76 House lawmakers, has penned a bipartisan letter to the White House and Treasury. This letter urges the Biden administration to take action following reports of Hamas raising funds through digital currency. This move by Warren indicates a growing political concern about the use of cryptocurrency in terrorist financing and drug trafficking. The Biden administration is now under pressure to demonstrate its proactive stance on this matter.  Sound familiar to Canada's trucking woes last year?

Treasury's Response

The U.S. Treasury Department has sanctioned two senior Hamas officials, a Gaza Strip-based crypto exchange, its operators, and six individuals who manage the militant group's investment portfolio across multiple countries. Secretary Janet Yellen emphasized the Treasury's commitment to disrupting terror finance and expressed the intention to deny Hamas the ability to raise funds for terror activities.

Hamas's Crypto Fundraising Efforts

While cryptocurrency has been highlighted as a significant tool for Hamas's financing, it's just a part of a larger puzzle. TRM Labs identified fundraising efforts by groups like GazaNow, which supports Hamas, soliciting crypto donations. However, the amounts raised via cryptocurrency are relatively small compared to traditional fundraising methods.

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Hamas also receives substantial aid from countries like Iran, Qatar, and Turkey. Moreover, they have a global network of charities and private donors. The funds flowing to Hamas through cryptocurrencies are the most visible and easiest to track, block, and seize. Israeli and U.S. authorities have successfully traced and seized funds intended for Hamas in the past.

Terrorist Financing Battle Ranges On

In conclusion, while cryptocurrency presents a new avenue for terrorist financing, traditional methods still dominate. The global community, led by entities like the U.S. Treasury and supported by lawmakers, is actively working to curb these illicit financial flows. The challenge lies in balancing the promise of blockchain technology with the potential risks it poses in the wrong hands.


NCFA Jan 2018 resize - Unraveling Crypto's Role in Global Terrorist FinancingThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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