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The Examination of Cryptocurrency Mining Operations in Iran by U.S. Senator Warren
U.S. Senator Elizabeth Warren recently raised concerns regarding cryptocurrency mining operations in Iran. In a formal letter addressed to the Biden Administration, co-signed by Senator Angus King, Warren expressed worries about these operations financing terrorist groups such as Hamas globally.
Iran legalized the cryptocurrency mining industry in 2019, and according to Warren and King, Iran has raised significant amounts of money through this activity. With the revenue generated, Iran can purchase imports, move funds domestically and internationally, and fund terrorist organizations like Hamas. This poses a direct threat to national security, as outlined by the senators.
The letter cites a report by the International Monetary Fund from April 2022, stating that countries with energy-intensive blockchains like Bitcoin can monetize energy resources that cannot be exported due to sanctions. This highlights the potential for countries like Iran to leverage cryptocurrency mining for financial gain.
Furthermore, Warren and King referenced a Chainalysis report from February 2024, revealing that a significant portion of inflows to Iranian crypto exchanges, particularly Bitcoin, are estimated to come from mining pools. This indicates the extent of Iran’s involvement in cryptocurrency activities.
Inquiries from U.S. Senators
Warren and King posed several inquiries to the Biden Administration regarding Iran’s cryptocurrency activities. They sought information on the revenue generated by Iranian crypto miners since 2021, the distribution of these funds by the government or its affiliates, and the extent to which these funds support terrorism or military operations. These questions underscore the senators’ commitment to addressing the national security implications of Iran’s alleged crypto mining operations.
The letter from Warren and King emphasizes the urgent need for action to prevent Iran from using cryptocurrency to fund attacks against nations like Israel. It is part of Warren’s broader campaign against the illicit use of cryptocurrency.
Warren has been active in advocating for increased regulations surrounding cryptocurrency. In the past, she has called for updates to the Bank Secrecy Act to combat the threat posed by crypto, pointing to instances like North Korea allegedly using cryptocurrency to fund its nuclear weapons program. Most recently, in April, Warren reached out to the U.S. Department of Justice and Homeland Security, seeking guidance on combating Child Sexual Abuse Material (CSAM) that is funded through cryptocurrency.
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