Crypto Assets Provided to Hamas Sparks Concern; U.S. Treasury Responds with Sanctions

U.S. Senator Elizabeth Warren and many members of Congress have taken action to investigate the allegations that Hamas collected funds through cryptocurrency. Similarly, the U.S. Treasury Department announced that they have imposed sanctions on a Gaza-based virtual currency exchange.

As tensions rise on the Israel-Gaza front, there are concerns in the American government over allegations that Hamas collected millions of dollars through cryptocurrency before the attacks. U.S. Senator Elizabeth Warren stated that they are concerned about this and have asked for answers from the Joe Biden administration. Warren and over 100 members of Congress want to investigate how Hamas collected these funds.

Details; Millions of Dollars Transferred to Hamas and Hezbollah via Cryptocurrency Before the Attack

Proposal to Reduce Illegal Crypto Activities

One of the main reasons for these concerns is a report in the Wall Street Journal. According to the report, Hamas and other militant groups used cryptocurrency as a financing tool before attacks on Israel. This news prompted the American Congress to act. Congress called for steps to comprehensively address the illegal financing risks of cryptocurrency. Moreover, there are evaluations of legislative proposals designed to reduce illegal crypto activities.

U.S. Treasury Department Takes Action

In response to these concerns about terrorist financing, the U.S. Treasury Department announced sanctions on a Gaza-based virtual currency exchange that supports Hamas’s terrorist operations. These sanctions targeted Hamas terrorist groups in Gaza, Sudan, Turkey, Algeria, and Qatar, as well as some other individuals. Treasury Secretary Janet Yellen stated that these sanctions are aimed at Hamas’s financiers and emphasized their clear stance against terrorist acts.

“The United States is taking swift and decisive action to target Hamas’s financiers and facilitators following its brutal and unconscionable massacre of Israeli civilians, including children.” 

Janet Yellen, as per Coindesk.

In summary, the risk of cryptocurrencies being used in terrorist financing is on the agenda of governments worldwide, especially the United States. It is now certain that various sanctions will be imposed on this issue.

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