The theory that Hamas relied on crypto assets to finance terrorism is false: U.S. Department of the Treasury | CoinDesk JAPAN

• Brian Nelson, the U.S. Treasury Department's assistant secretary for terrorism and financial intelligence, testified on the 14th that the terrorist organization Hamas received little support in digital assets, denying reports that it had acquired tens of millions of dollars worth of crypto assets. did.
• Nelson, however, said his office is focused on the threat posed by digital assets and called on Congress to help provide further protection.

Immediately after Hamas carried out terrorist attacks in Israel last year, crypto assets were accused of being used to finance brutal killings. The major media reports were later criticized by crypto asset experts, but now the head of the authorities in charge of terrorist financing has admitted to lawmakers that the reports had been exaggerated.

Originated from a report containing misunderstandings

In October, The Wall Street Journal cited a blog post written and later edited by blockchain analytics firm Elliptic that linked tens of millions of dollars in crypto payments to groups such as Hamas and Islamic Jihad. he claimed. However, this explanation contained misunderstandings about which assets actually fell into the hands of terrorists.

“We don't expect it to be very large,” Brian Nelson, the Treasury Department's deputy secretary for terrorism and financial intelligence, said in testimony before the House Financial Services Committee.

The Wall Street Journal significantly revised its initial report after blockchain analytics firms Elliptic and Chainalysis provided disproving data. Even after the review, Democratic senators such as Sherrod Brown and Elizabeth Warren continue to support legislative efforts to impose stricter rules on the crypto industry in the name of national security. We continued to use this data in our discussions.

Terrorist organizations use a small amount of crypto assets

“To be clear, Hamas is using a relatively small amount of crypto assets compared to the amounts that have been widely reported,” Republican Representative Tom Emmer said in a statement. asked for answers.

“That's our assessment,” Nelson said, making clear that these organizations are also looking at other ways to help.

“Frankly, our assessment is that terrorists still prefer to use traditional products and services,” Nelson said. The Treasury Department has sanctioned a number of business companies and local financial institutions for providing such support.

Measures to use digital assets continue

Emmer called on Nelson to more formally correct the record on the link between digital assets and terrorism, noting that “there are senators who are passing legislation based on these false numbers.”

Despite the response to Emmer, Nelson said in a prepared statement that the government was “focused on reducing the ability of these groups to exploit their digital assets.”

“Participants in virtual asset markets and forums need additional tools and resources to root out illicit finance,” Nelson said, adding that he looks forward to working with Congress.

｜Translation and editing: Rinan Hayashi
｜Image: Jesse Hamilton/CoinDesk
｜Original text: US Treasury Debunks Narrative That Hamas Relied on Crypto to Fund Terrorism