Warren, Marshall, Casten, 100+ Lawmakers Ask Biden Administration to Address Crypto-Financed Terrorism after Reports of Hamas Raising Millions in Crypto to Fund Operations

Letter

Dear Under Secretary Nelson and Mr. Sullivan:

We write to express our grave concern regarding reports that, in the months leading up to their
brutal and horrific October 7th attack on Israel, Hamas and Palestinian Islamic Jihad (PIJ) raised
millions of dollars in crypto -- evading U.S. sanctions and funding their operations.1 Indeed,
between August 2021 and this past June, the two groups raised over $130 million in crypto, and
moved millions among each other, "with PIJ sending over $12 million in crypto to Hezbollah
since 2023.2 As the Wall Street Journal reports, "[r]esearchers who study Hamas's financing said
crypto remains one of a number of tools the group uses to raise funds."3 Given the clear and
present danger posed by the financing of these and other militant organizations, we ask the
Administration to provide additional details on its plan to prevent the use of crypto for the
financing of terrorism.

On the morning of October 7th, Hamas militants fired an estimated 2,200 rockets towards Israel,
as hundreds of militants entered Israel on motorcycles and motorboats.4 As of October 11, 2023,
over 1,200 people have died in Israel as a result of the attacks, and 2,900 have been wounded.5
While "[i]t couldn't be determined whether the crypto they received was directly used to finance
the assault,"6 Hamas has been clear in its solicitations for crypto about the intended use of the
assets. As the group said in a Telegram post asking for bitcoin, "[t]he reality of jihad is the
expenditure of effort and energy, and money is the backbone of war."7

1 The Wall Street Journal, "Hamas Militants Behind Israel Attack Raised Millions in Crypto," Angus Berwick and Ian Talley, October 10, 2023, https://www.wsj.com/world/middle-east/militants-behind-israel-attack-raisedmillions-in-crypto-b9134b7a.
2 Id.
33 Id.
4 ABC News, "Death came from sea, air and ground: A timeline of surprise attack by Hamas on Israel," Bill Hutchinson, October 10, 2023, https://abcnews.go.com/International/timeline-surprise-rocket-attack-hamas-israel/story?id=103816006.
5 Id.
6 The Wall Street Journal, "Hamas Militants Behind Israel Attack Raised Millions in Crypto," Angus Berwick and Ian Talley, October 10, 2023, https://www.wsj.com/world/middle-east/militants-behind-israel-attack-raisedmillions-in-crypto-b9134b7a.
7 Id.
Both the Israeli and U.S. governments have warned of the threat that crypto poses in the fight
against terrorism. The Israeli government has seized crypto assets from terrorist organizations --
including Hamas and Hezbollah -- before.8 As recently as August 2023, the country's National
Bureau for Counter-Terror Financing ordered the seizure of 67 PIJ-owned accounts with
Binance, the world's largest crypto exchange.9 Despite these and other seizures, experts believe
that only "a small percentage of the overall amount of funds that flowed through" Hamas and PIJ
wallets has been seized.10

That the deadly attack by Hamas on Israeli civilians comes as the group has become "one of the
most sophisticated crypto users in the terror-finance domain"11 clarifies the national security
threat crypto poses to the U.S., and our allies. Congress and this Administration must take strong
action to thoroughly address crypto illicit finance risks before it can be used to finance another
tragedy. As Congress considers legislative proposals designed to mitigate crypto money
laundering and illicit finance risks, we urge you to swiftly and categorically act to meaningfully
curtail illicit crypto activity and protect our national security and that of our allies. We therefore
request answers to the following questions regarding Treasury's plans to address the serious
national security threats posed by the use of cryptocurrency to finance terrorism no later than
October 31, 2023:

1. What steps is the Biden Administration taking to address the use of cryptocurrency by
terrorist organizations, including but not limited to Hamas, PIJ, and Hezbollah?
2. Reports indicate that Hamas and PIJ collectively raised over $130 million in crypto
between August 2021 and June 2023.12 Is this consistent with the Administration's
estimates? Does the Administration have an estimate of the value of crypto assets
remaining in wallets controlled by these groups?
3. Does the Administration have an estimate of what percentage of Hamas, PIJ, and
Hezbollah's total funding moves through cryptocurrency channels? Does the
Administration know how those funds are utilized and through what means?
4. What challenges does the Administration face in arresting the success of groups like
Hamas in raising funds via cryptocurrency? How is it addressing those challenges?
5. Reports suggest that PIJ held crypto accounts at Binance, and that PIJ "primarily used the
stablecoin tether" to transact.13
a. What information does the Administration have about which actors are facilitating
the sending and exchange of digital assets to and between terrorist organizations
like Hamas, PIJ, and Hezbollah?
b. Which actors are facilitating the exchange of cryptocurrency for other assets,
including those exchanged for weapons?
c. Where are these actors based?
d. What actions has the Administration taken against these actors?

8 The Wall Street Journal, "Hamas Militants Behind Israel Attack Raised Millions in Crypto," Angus Berwick and Ian Talley, October 10, 2023, https://www.wsj.com/world/middle-east/militants-behind-israel-attack-raisedmillions-in-crypto-b9134b7a.
9 Id.
10 Id.
11 Id.
12 Id.
13 Id.

2

6. What additional statutory tools does the Administration need to address the national
security threats posed by illicit use of crypto by terrorist organizations?
7. What additional resources does the Administration need to address the national security
threats posed by illicit use of crypto by terrorist organizations?

Sincerely,

Source