FinCEN’s letter suggests that reports of activist groups’ use of cryptocurrencies may be exaggerated.
The U.S. Treasury Department is investigating a $165 million cryptocurrency transaction that may have supported the Palestinian militant group Hamas, according to a new report from the Wall Street Journal (WSJ).
A letter signed by U.S. Treasury Undersecretary Adewale Adeyemo revealed the conclusions based on a review of suspicious activity reports submitted between January 2020 and October 2023.
Deputy Minister of Finance promotes legislation
In a letter to leaders of the Senate Banking Committee and House Financial Services Committee, Adeyemo urged support for legislation that would expand the Treasury Department’s regulatory authority over cryptocurrency transactions.
The letter noted that the $165 million figure may not be entirely attributed to cryptocurrencies or Hamas, but financial institutions may have reported customers’ total transaction value, including traditional and digital assets, as cryptocurrencies or Hamas. transactions, even if only a small portion of the reported activity is associated with the organization.
Adeyemo expressed concern that terrorist groups such as Hamas may increasingly turn to cryptocurrencies for financing as traditional financial channels are cut off. However, he acknowledged that the Treasury Department assessed that Hamas and other terrorists prefer to use traditional financial products and services.
More than 200 addresses are suspected of participating
According to an investigation by the Financial Crimes Enforcement Network (FinCEN), more than 200 cryptocurrency addresses have been identified as potentially linked to these transactions. The Treasury Department is currently continuing to assess potential risks associated with cryptocurrencies and related services.
The U.S. Treasury Department's investigation focuses on transactions registered with U.S. agencies that may have supported Hamas ahead of its Oct. 7 attack on Israel. FinCEN’s letter suggests that reports of the armed group’s use of cryptocurrency may be exaggerated, but the exact amount remains unclear.
U.S. lawmakers have long discussed the role of cryptocurrencies in terror financing in an effort to sanction Hamas. This comes after a group of lawmakers led by House leaders passed a letter asking President Joe Biden to provide more data on Hamas's use of cryptocurrencies.
The letter expressed serious concerns about Hamas’s ability to use digital assets to fund its operations, citing reports showing that between August 2021 and June 2023, approximately $41 million and approximately $93 million were exchanged with Hamas. Related to Palestinian Islamic Jihad. However, it is unclear how many of the identified digital assets are accessible to Hamas or remain in its hands.#哈马斯 #金融犯罪
