Key Takeaways:
- U.S. Senators Elizabeth Warren and Angus King have raised national security concerns about Iranian cryptocurrency mining, suggesting it could be supporting terrorist activities and evading U.S. sanctions.
- The senators cited instances where proceeds from cryptocurrency mining in Iran were allegedly used to fund attacks, including the drone attack in Jordan that killed three U.S. service members.
- They have requested detailed investigations into the revenues from Iranian crypto mining and its potential uses for money laundering, aiming to assess the risk and impact on U.S. national security.
US Senators Elizabeth Warren and Angus King have expressed concerns regarding the national security risks posed by cryptocurrency mining activities in Iran.
In a recent letter to key US officials, they urged the Biden administration to investigate the potential connections between Iranian crypto miners and their government, particularly in relation to the evasion of US sanctions.
Senators Elizabeth Warren and Angus King pressed the Biden administration for information on how it addresses Iran’s use of cryptocurrency mining to evade sanctions. https://t.co/TfMd16KWNO
— The Hill (@thehill) May 2, 2024
Addressed to National Security Advisor Jake Sullivan, Defense Secretary Lloyd Austin, and Treasury Secretary Janet Yellen, the letter dated May 1, details the lawmakers’ worries about the use of digital assets by Iran to fund terrorist activities.
The senators referenced specific instances, such as Iran’s funding of terrorist organizations and their April assault on Israel using proceeds from cryptocurrency mining.
The letter stated, “Iran’s use of crypto to evade sanctions poses a direct threat to our national security.”
It highlighted the Iranian military’s financial support to Hezbollah, which is allegedly linked to the drone attack in Jordan in January 2024 that resulted in the death of three US service members.
The senators emphasized the urgency of addressing these concerns to prevent future crypto-funded attacks against allies.
Furthermore, Senators Warren and King have requested detailed information on the revenues generated by crypto miners in Iran, investigating potential uses for money laundering, and understanding how these activities might undermine US national security.
The crypto mining sector in Iran allows it to “move funds domestically and internationally, and fund Hamas and other terrorist organizations,” @SenWarren and @SenAngusKing write. https://t.co/ohn7JBFEEr
— Decrypt (@decryptmedia) May 2, 2024
They cited a report from an Iranian think tank which suggested a preference for “newly-minted” Bitcoins, perceived as being “less traceable,” and noted that Iranian BTC miners might have generated as much as $1 billion in 2021.
In the backdrop of these developments, Senator Warren, known for her critical stance on cryptocurrency’s role in illicit activities, continues her campaign against the use of digital currencies in crime.
As she prepares for her November reelection campaign against Republican candidate and crypto lawyer John Deaton, her focus on cryptocurrency’s risks remains a cornerstone of her legislative agenda.
Elizabeth Warren is asking law makers to stop Iran from mining bitcoin pic.twitter.com/c1y0YwT2cs
— Crypto Tea (@CryptoTea_) May 3, 2024
The US and other international bodies have imposed various sanctions on Iran since 1979, which were intended to curb its nuclear ambitions.
Although Iranian authorities have periodically cracked down on crypto mining citing electricity usage concerns, the government officially legalized the practice in 2019, underscoring the complexities of regulating this emerging technology.
About The Author
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