Blockchain
Senator Warren Claims Iranian Cryptocurrency Mining Supports Terrorism
Last updated: May 3, 2024 04:18 EDT | 1 minute read
US Senator and outspoken cryptocurrency critic Elizabeth Warren has claimed that Iranian cryptocurrency miners have ties to terrorists, including Hamas.
In a open letter on May 1, Senator Warren and Senator Angus King Jr. jointly warned that this “ongoing activity by the Iranian government threatens our national security.”
The lawmakers asked the Biden administration to provide information on efforts “to combat Iran’s rampant evasion of U.S. and international sanctions through cryptocurrency mining.”
The senators raised the alarm especially regarding Iran cryptocurrency mining the company’s ties to funding Hamas, through “steady income” from mining.
The letter contained details of Iran’s massive cryptocurrency mining operations in recent years. “Cryptocurrency mining has become increasingly profitable for Iran,” he added.
“Iran legalized the cryptocurrency mining industry in 2019. In the five years since Iran has raised millions of dollars through cryptocurrency mining, a steady source of revenue that allows it to purchase imports, move funds nationally and internationally and finance Hamas and other terrorist organizations. “
Furthermore, estimates suggest that Iranian Bitcoin mining could have “produced up to $1 billion in revenue in 2021.” This is mainly due to the Iranian Ministry of Industry, Mining and Trade release 1,000 cryptocurrency mining unit licenses so far, despite these operations absorbing large quantities of electricity.
Senators highlight Iran’s use of cryptocurrencies to launder funds
Aside from highly profitable cryptocurrency mining, senators blamed the nation’s ability to launder funds using cryptocurrencies.
For example, they mentioned how the website Nobitex, the nation’s largest cryptocurrency exchange, provides guidelines to users on how to avoid fines. Notably, Binance processed $8 billion worth of Iranian crypto transactions over a four-year period through Nobitex.
Additionally, the Iranian military has had a history of ties to ransomware gangs. During Iran’s attack on Israel, the former’s military used cryptocurrencies to finance known terrorist groups such as Hezbollah.
“Iran’s use of cryptocurrencies to evade sanctions poses a direct threat to our national security,” the lawmakers stressed. “Unless we act, Iran will continue to use cryptocurrencies to finance attacks against Israel.”