Elizabeth Warren uses Hamas as her newest scapegoat in war on crypto

Published

2 years ago

October 24, 2023

admin

Massachusetts Sen. Elizabeth Warren is at it again. With mainstream press outlets including Germany’s Deutsche Welle running sensationalist headlines — “How cryptocurrency fueled Hamas’ terrorist attack” — Warren is using Hamas’ attack on Israel to fuel her own war on cryptocurrency.

Crypto’s role in the conflict came into focus on Oct. 10, when Israeli police froze crypto accounts used for donations to Hamas. It was not the first time. In 2021, Israel’s Terror Financing of Israel (NBCTF) seized crypto wallets linked to a Hamas fundraising campaign.

While Binance worked “closely with international counter-terrorism authorities” on the seizures, Warren led a group of more than 100 U.S. lawmakers in sending the Biden administration a letter letter asking it to crack down on Hamas and its affiliates’ cryptocurrency wallets — despite the organization’s relative struggle to raise crypto as part of its fundraising efforts.

“Congress and this administration must take strong action to thoroughly address crypto illicit finance risks before it can be used to finance another tragedy,” the letter said.

Hamas raised millions via crypto in the months leading up to their attack on Israel. @RogerMarshallMD, @RepCasten and I are leading 100+ lawmakers urging the Biden admin to address crypto-financed terrorism.https://t.co/JksREJ3Dgs

— Elizabeth Warren (@SenWarren) October 18, 2023

The lawmakers requested that the Biden administration also provide estimates on the value of crypto assets that remain in Hamas-controlled wallets, how much of Hamas’ operations are funded through crypto, and any information it has on the actors facilitating the sending of crypto to and from Hamas and other militant groups.

The U.S. Treasury Department sanctioned Gaza-based crypto broker “Buy Cash Money and Money Transfer Company (Buy Cash)” on Oct. 18, revealing it had been used for a whopping $2,000 Bitcoin transaction — a paltry sum compared to the hundreds of millions of dollars used to fund Hamas. One sanctioned wallet had $16 in it.

The treasury department has sanctioned a Hamas-linked wallet as Politico reports that “Crypto’s role in financing Hamas’ activity has emerged as a hot issue for lawmakers”

The sanctioned wallet has $16 in it and made its last transfer 18 months ago pic.twitter.com/IbsGfyZ3zl

— Conor (@jconorgrogan) October 18, 2023

“We will continue to take all steps necessary to deny Hamas terrorists the ability to raise and use funds to carry out atrocities and terrorize the people of Israel,” said Treasury Secretary Janet Yellen. “That includes by imposing sanctions and coordinating with allies and partners to track, freeze, and seize any Hamas-related assets in their jurisdictions.”

Terrorists’ use of cryptocurrency has been dramatically overstated. The dollar remains the key tool for money launderers, with crypto playing a relatively tiny role. Why would terrorists use blockchain when its transactions can be tracked? Beyond this, terrorists arguably have little need for crypto when they have the ability to siphon aid funds from the international community. The United Nations spent nearly $4.5 billion in Gaza from 2014-2020, including $600 million in 2020 alone, even as Hamas reportedly turned European Union-funded water pipelines into home-made rockets.

Elliptic.co, a blockchain-analysis provider, suggested in a report this month that Hamas did receive cryptocurrency around the time of the attack. However, Hamas has not used crypto as a primary source of funding, instead opting to use the banking system, money service businesses, as well as informal “hawala” transfers. This global financing network launders funds from charities and friendly nations to Hamas. Hamas started publicly seeking funds in crypto in 2019 through its Telegram channel. The group now uses payment processors to create crypto addresses and hide its cryptocurrency wallets.

The bulk of anti-terrorism efforts should not focus on terrorist use of cryptocurrency, considering the diverse ways these organizations procure funds. “There’s not one financing method for Hamas or other terrorist organizations. They’re opportunistic and adaptive,” former CIA analyst Yaya Fanusie, now an adjunct senior fellow with the Center for a New American Security, said in an interview with CNN. “Efforts to stop them are a constant game of cat-and-mouse.”

Due to crypto’s transparent nature, it’s proven to be no secret when Hamas uses crypto, as made clear by the recent crypto freezing action. When it does use crypto, Hamas generally receives small-dollar donations, ultimately representing a small fragment of the organization’s considerable $300 million annual budget. It’s disingenuous to state that terrorist use of crypto is a credible threat relative to the fiat-denominated funds moving through these organizations.

Warren’s anti-crypto pet project appears to be a red herring, and ultimately distracts from more fruitful conversations about how terrorist organizations actually raise funds through the traditional financial system.

Kadan Stadelmann is a blockchain developer and the Komodo Platform’s chief technology officer. He graduated from the University of Vienna in 2011 with a degree in information technology before attending the Berlin Institute of Technology for technical informatics and scientific computing. He joined the Komodo team in 2016.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Politics

Nasdaq files to list 21Shares Dogecoin ETF

Published

17 mins ago

April 29, 2025

admin

Nasdaq files to list 21Shares Dogecoin ETF

The United States exchange Nasdaq has asked regulators for permission to list a 21Shares exchange-traded fund (ETF) holding the popular memcoin Dogecoin, regulatory filings show.

The move follows 21Shares’ April 10 filing of its initial proposal to launch its Dogecoin ETF, shortly after similar applications from rivals Bitwise and Grayscale. The asset manager has also sought regulators’ permission to list ETFs holding other cryptocurrencies, including Solana (SOL), XRP (XRP), and Polkadot (DOT).

Nasdaq must gain approval from the Securities and Exchange Commission (SEC) before it can list and trade the fund. The request amounts to a regulatory review process that could determine whether Dogecoin becomes accessible to a broader range of investors through an ETF structure.

Onslaught of altcoin ETFs

Fund issuers requested to list dozens of altcoin ETFs after US President Donald Trump instructed the SEC to take a friendlier stance toward cryptocurrencies after his second term began in January.

As of April 21, more than 70 crypto ETFs were awaiting the SEC’s review. The list includes alternative layer-1 (L1) native tokens, such as SOL and Sui (SUI), as well as memecoins such as Bonk (BONK) and Official Trump (TRUMP).

While exchanges such as Nasdaq seek to list more crypto ETFs, they are also pushing for firmer US regulatory oversight of digital assets. In an April 25 comment letter, Nasdaq urged the SEC to hold digital assets to the same regulatory standards as securities if they constitute “stocks by any other name.”

Dogecoin utility

Dogecoin (DOGE) is a popular memecoin with a market capitalization of nearly $26 billion as of April 29, according to CoinGecko.

It is distinct from most other memecoins because DOGE is the native token of the Dogecoin network.

The proof-of-work blockchain network is designed as a faster, cheaper alternative to Bitcoin (BTC) for peer-to-peer payments.

It processed more than 40,000 transactions in the past 24 hours, according to data from Bitinfocharts.com.

In September 2024, blockchain developers QED Protocol and Nexus tipped plans to launch a layer-2 (L2) scaling solution designed to bring smart contracts to Dogecoin.

Magazine: Altcoin season to hit in Q2? Mantra’s plan to win trust: Hodler’s Digest, April 13 – 19

Politics

UK gov’t proposes crypto rules in response to scams

Published

3 hours ago

April 29, 2025

admin

<div>UK gov't proposes crypto rules in response to scams</div>

The United Kingdom’s Treasury and Chancellor of the Exchequer, Rachel Reeves, have proposed new crypto rules aimed at “support[ing] innovation while cracking down on fraudsters.”

In an April 29 notice, the UK government announced draft rules for cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), that would bring “crypto exchanges, dealers and agents” in line with regulations, as many residents were “exposed to risky firms and scams.” It cited discussions with US government officials, including a proposed US-UK cross-border sandbox from the Securities and Exchange Commission’s Hester Peirce.

“Today’s announcement sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability,” said the notice. “The government will bring forward final cryptoasset legislation at the earliest opportunity, following engagement on the draft provisions with industry.”

Treasury and Reeves said the UK was committed to making the country a “global hub for digital asset technologies,” referencing the goals of the previous government under the Conservative Party. A 2023 consultation paper from Treasury proposed “bringing a wide range of cryptoasset activities” — including trading and issuing stablecoins — in line with UK regulations.

Praise from industry

In a statement shared with Cointelegraph, Ian Silvera, the associate director for the self-regulatory trade association CryptoUK, called the government announcement a “very much welcomed and a big victory” for crypto firms. However, he added that the industry could also benefit from regulatory clarity on liquid staking and DeFi.

“Though there has been good regulatory progress from the [Financial Conduct Authority], which published its crypto roadmap late last year, the UK government first committed to becoming a global crypto hub in 2022,” said Silvera. “Progress has been slow since then, but as the Chancellor has recognised herself the mainstreaming of the industry has continued, with now 12% of all UK adults owning some sort of crypto, up from 4% in 2021.”

The FCA plans to publish final rules on crypto sometime in 2026, setting the groundwork for the UK regulatory regime to go live. The roadmap to greater regulatory clarity in the UK could follow the European Union, which started to implement its Markets in Crypto-Assets (MiCA) framework in December.

Magazine: Financial nihilism in crypto is over — It’s time to dream big again

Politics

$649B stablecoin transfers linked to illicit activity in 2024: Report

Published

4 hours ago

April 29, 2025

admin

9B stablecoin transfers linked to illicit activity in 2024: Report

Cryptocurrency compliance firm Bitrace found that $649 billion worth of stablecoins flowed through addresses classified as high-risk in 2024, according to an April 29 report.

Bitrace defines high-risk blockchain addresses as those used by illegal entities to receive, transfer or store stablecoins.

Crypto compliance firms typically score crypto wallet addresses based on their likelihood of involvement in illicit activities. The higher the risk, the higher the likelihood of foul play, and the less likely compliant crypto businesses are to accept the assets.

Per the report, the amount accounted for roughly 5.14% of all stablecoin transaction volume in 2024. This is down 0.8% from 5.94% the previous year, but significantly higher than the 2.8% reported in 2022 and 1.63% in 2021.

$649B stablecoin transfers linked to illicit activity in 2024: Report — *Proportion of high-risk stablecoin transactions. Source:* *Bitrace*

Tron USDT tops high-risk transactions

Tron-based USDt (USDT) dominates high-risk stablecoin transactions, with Bitrace data indicating that well over 70% of the volume moved on the network. The remaining high-risk stablecoin transactions are mostly Ethereum-based USDt and a small amount of USDC (USDC).

A likely explanation for the prevalence of USDT is likely due to its larger market capitalization and adoption compared with other stablecoins. At the time of writing, CoinMarketCap shows that USDt has a market cap of over $148 billion, while USDC stands at over $62 billion.

Tron’s prevalence is not as easy to explain. Ethereum remains the more popular choice for most stablecoin users, with DefiLlama showing nearly $124.3 billion worth of stablecoins circulating on the network. Tron ranks second, with about $71 billion — almost 43% less than Ethereum.

When comparing USDT balances alone, Tron holds slightly more than Ethereum: 47.4% of USDT supply, versus Ethereum’s 45.44%.

Crypto gambling continues its rise

Bitrace also reported that in 2024, online gambling platforms processed $217.8 billion worth of stablecoins — a 17.5% increase over the previous year.

Once again, USDT also dominated this type of activity. Still, USDC’s market share is rapidly rising, clocking in at 13.36% in 2024.

The data follows recent reports that crypto casinos generated more than $81 billion in revenue in 2024, even as regulators in key jurisdictions continued to block access to the platforms, according to a new report.

Magazine: Ridiculous ‘Chinese Mint’ crypto scam, Japan dives into stablecoins: Asia Express