US Treasury Official Provides Clarification on Crypto Donations to Terrorist Groups
The US Treasury has revisited previous statements and affirmed that cryptocurrencies play only a minor role in the financing of terrorist groups like Hamas. This declaration aims to rectify a previous report that exaggerated the amount of funds received by these groups through cryptocurrencies.
Details and Corrections of Previous Reports
Brian Nelson, the Under Secretary of the Treasury for Terrorism and Financial Intelligence, testified on February 14 before the House Financial Services Committee, stating that the amounts mentioned in a Wall Street Journal article were incorrect. The initial report, partially corrected by the journal, had claimed that Palestinian Islamic Jihad and Hamas had received $93 million and $41 million respectively between August 2021 and June 2023. These figures were revised after blockchain analytics firm Elliptic, the source of the cited data, contested the report.
In his efforts to unravel the reported figures, Brian Nelson emphasized a crucial distinction: the mentioned amounts referred to the wallets as a whole, not the amounts actually sent.
Legislative Reaction and Crypto Sector Position
More than 100 US lawmakers, led by Senator Elizabeth Warren, used the report to support legislation aimed at restricting the illicit use of cryptocurrencies under the guise of national security. The cryptocurrency sector has responded, arguing that this legislation would have little effect and push the industry to relocate.
Addressing questions about the exact amount recovered by these groups through cryptocurrencies, Nelson stated that the figure was likely not very high, confirming that the use of cryptocurrencies by Hamas was relatively low compared to widely circulated reports. The Treasury continues to monitor the use of cryptocurrencies by terrorists, asking Congress for additional tools and resources to eradicate illicit financing in virtual asset markets.
