Hamas's Digital Assets Under Scrutiny by American Lawmakers; Strong Concerns and Calls for Preventive Action

More than a hundred representatives from both the Democratic and Republican parties in the U.S. have called for immediate preventive measures regarding the use of cryptocurrencies by Hamas militants and their affiliates in a letter to the U.S. government. These 105 representatives, including Democratic Senator Elizabeth Warren and Republican Senator Roger Marshall, expressed 'serious concern' in a letter to the White House and the U.S. Treasury on Tuesday, October 17, regarding the use of cryptocurrencies by the Palestinian groups Hamas and Islamic Jihad to finance their operations and evade U.S. sanctions. Both groups are listed as terrorist organizations by the U.S. According to Reuters, part of the letter emphasizes that 'Congress and the government must take firm action to comprehensively address this issue before unauthorized digital currency is used to finance another tragedy.' The signatories of this letter have urged the Biden administration to gather information regarding the amount of Hamas's digital assets, the role of cryptocurrencies in financing Hamas's operations, and any information related to facilitators of cryptocurrency transactions with Hamas and other militant groups. The Israeli police announced on October 10 that they had blocked several cryptocurrency accounts related to donations to Hamas. Previously, Yoav Gallant, Israel's defense minister, stated that the country had seized digital accounts linked to the Quds Force of the Islamic Revolutionary Guard Corps and Hezbollah, confiscating millions of dollars in digital currency. Reuters reported earlier this year that Israel had blocked approximately 190 cryptocurrency accounts on the Binance cryptocurrency exchange since 2021, with some of these accounts belonging to Palestinian companies associated with Hamas. Binance, a leading cryptocurrency exchange, stated that it has been closely cooperating with international anti-terrorism authorities regarding this matter. The anonymous transfer capability of cryptocurrencies, as a major feature of this digital asset, has led to multiple government actions to combat fraud and money laundering in this area. According to Reuters, Hamas is using an international financial support network, including cryptocurrencies, to garner support from charities and friendly countries. Researchers from TRM Labs, active in identifying cryptocurrency fraud, reported that Israeli officials have seized tens of millions of dollars in cryptocurrency from accounts linked to Hamas in recent years. Joe Biden stated that the people of Gaza need food, water, and shelter; aid will not reach Hamas. The U.S. and 46 other countries supported maintaining sanctions related to Resolution 2231. Israel stated that it will not prevent aid from entering Gaza from Egypt. Senator Blackburn criticized the $100 million U.S. aid to Palestinians, stating it will reach Hamas.