According to a recent report by The Wall Street Journal (WSJ), the US Treasury Department is investigating $165 million worth of cryptocurrency transactions that may have supported Hamas, the Palestinian militant group.
Deputy Treasury Secretary Adewale Adeyemo signed a letter disclosing these findings based on an examination of suspicious activity reports filed between January 2020 and October 2023.
Treasury MP pushes for legislation
Adeyemo's letter, addressed to leaders of the Senate Banking and Finance Committees, urged support for legislation to expand the Treasury Department's oversight authority over cryptocurrency transactions.
He noted that the $165 million figure may not be attributed solely to cryptocurrencies or Hamas, as financial institutions may have reported the total value of client transactions, including traditional and digital assets, as being linked to Hamas, even if it was only a small portion of the amount. Reported activity is related to the group.
Adeyemo expressed concerns that terrorist groups such as Hamas may increasingly turn to cryptocurrencies for funding as access to traditional financial services is cut off. However, he acknowledged that the Treasury Department assesses the preference of Hamas and other terrorists for traditional financial products and services.
More than 200 addresses are suspected of involvement
According to an investigation by the Financial Crimes Enforcement Network (FinCEN), it was determined that more than 200 cryptocurrency addresses could be linked to these transactions. The Treasury Department is currently engaged in an ongoing assessment of the potential risks associated with cryptocurrencies and such services.
The focus of the Treasury Department's investigation was on transactions recorded at US institutions that may have supported Hamas before its attack on Israel on October 7. FinCEN's letter suggests that the reported use of cryptocurrencies by the armed group may be exaggerated, although the exact amount remains unknown.
US lawmakers have long discussed the role of cryptocurrencies in financing terrorism to punish Hamas. Previously, a group of lawmakers led by House leaders asked President Joe Biden for more data on Hamas' use of cryptocurrencies through a letter.
It raised serious concerns about Hamas' ability to use digital assets to fund its operations, citing reports that around $41 million and around $93 million were linked to Hamas and Palestinian Islamic Jihad between August 2021 and June 2023. However, it remains unclear how much money was transferred. Its spending identified digital assets that could not be accessed or remain in the possession of Hamas.
