Iran's Activities in 'Financing Terrorism' Through Cryptocurrencies Under Scrutiny; Letter from Two US Senators to Biden Administration

Two American senators, Elizabeth Warren and Angus King, have called for a deeper investigation into Iran's activities in the field of cryptocurrencies in a letter to senior government officials. They are concerned that Iran is using these currencies for 'money laundering, financing terrorism, and evading sanctions.' Warren and King have asked the Treasury and Defense Secretaries, as well as the National Security Advisor, to determine how much revenue Iran has generated through cryptocurrency production since 2021. They are also seeking details on how Iran uses this money for military activities or to support terrorist groups. The senators state that Iran is using cryptocurrencies to circumvent energy sector sanctions and has turned to cryptocurrency mining instead of oil exports, which is an energy-intensive activity. They estimate that Iran was one of the top eight countries in cryptocurrency production in 2021, mining 7% of the world's Bitcoin. According to Warren and King, since legalizing the cryptocurrency industry in 2019, Iran has earned millions of dollars through cryptocurrency mining. They claim that this money helps Iran import necessary goods, transfer money domestically and internationally, and finance groups like Hamas. The senators reference a deadly attack by Iran-backed militants on a US base in Jordan that resulted in the deaths of three American personnel, stating that Iran's activities threaten US national security. They also mention Nobitex, the largest cryptocurrency exchange in Iran, which teaches users on its website how to evade sanctions. The letter states that Binance, the world's largest cryptocurrency exchange, has conducted $8 billion in cryptocurrency transactions for Iran over the past four years, most of which was through Nobitex. It is also reported that the US Treasury is investigating $165 million in cryptocurrency transactions related to Hamas over the past three years. Hamas receives about $100 million annually from Iran. Warren and King have also asked: How much of the cryptocurrency revenue is collected by the Iranian government or its affiliates? What does the US government estimate Iran launders annually through cryptocurrencies? What actions are being taken to counter the threats posed by Iran's reliance on cryptocurrencies? The letter from Warren and King reflects growing concerns among US officials about Iran's use of cryptocurrencies for illegal activities. They are calling for decisive action from the government to address this threat.