Bitcoin
Elizabeth Warren’s Latest Crypto Crusade: Bitcoin Mining in Iran
US Senator Elizabeth Warren is sounding yet another alarm about the evils of cryptocurrency; this time focusing on cryptocurrency mining operations in Iran, which she claims are funding Hamas and other terrorist groups around the world.
On a open letter to the Biden administration — co-signed by Sen. Angus King — Warren asked the Defense and Treasury secretaries as well as the White House National Security Advisor about the administration’s efforts to “combat Iran’s rampant evasion of U.S. sanctions and international markets through cryptocurrency (crypto) mining.”
“Iran legalized the crypto mining industry in 2019,” Warren and King wrote. “In the five years since Iran has raised millions of dollars through crypto mining… a steady source of revenue that allows it to buy imports, move funds nationally and internationally, and finance Hamas and other terrorist organizations.
“This continued activity by the Iranian government threatens our national security,” warn the senators.
“Mining energy-intensive blockchains like Bitcoin could allow countries to monetize energy resources, some of which cannot be exported due to sanctions,” the letter continued, citing an April 2022 report. International Monetary Fund (IMF) Report.
Warren and King also mentioned a February 2024 Chainalysis report. “More than three percent of all flows to Iranian cryptocurrency exchanges – and more than 29% of all Bitcoin flows – are estimated to come from mining pools,” they wrote.
Warren and King listed several questions for the Biden administration to answer about Iran’s cryptocurrency activities. How much revenue have Iranian crypto miners generated since 2021? What portion is collected by the government or its affiliates? And to what extent do these funds support terrorism or military activities?
Senators also want to know what the administration has done to address national security threats posed by Iran’s alleged sanctions-evading crypto activity.
“Unless we take action, Iran will continue to use cryptography to finance attacks against Israel,” the senators said.
The letter to the White House is Warren’s latest salvo in her ongoing campaign to combat the use of cryptocurrencies in illicit activities.
In December, Warren appealed to the Bank Secrecy Law to be updated to address the crypto “threat” claiming that North Korea is using cryptocurrency to finance its nuclear weapons program. Then in April, Warren asked the U.S. Department of Justice and Homeland Security to answer questions about how Congress could help them combat Child sexual abuse material (CSAM) financed with cryptocurrency.
Edited by Ryan Ozawa.