Senator Elizabeth Warren (D-MA) recently criticized North Korea’s use of cryptocurrency, stating that it poses a threat to national security. During a Senate Armed Services hearing, Warren accused North Korea of being able to pay for over 56 intercontinental ballistic missiles with the $1.7 billion worth of cryptocurrency it had reportedly stolen in 2022. She also expressed concern about crypto being used by rogue states, terrorists, and criminal organizations to fund their operations on a larger scale than ever before. Warren highlighted the role of crypto in aiding malicious groups, such as the state-sponsored hacking collective Lazarus Group and the crypto mixer Sinbad, which have been sanctioned for illicit activities.
In addition to addressing North Korea’s crypto activities, Warren also raised concerns about “pig butchering” scams and other crypto-related crimes in her testimony at the Senate hearing. She cited that more than 40,000 people in the U.S. lost over $3.5 billion to pig butchering scams in the past year. Pig butchering scams involve perpetrators exploiting victims’ trust to manipulate them into sending more funds. Warren emphasized that these scams are just one example of the many crypto-related crimes that exist, with criminal gangs reportedly stealing and laundering over $75 billion in cryptocurrency over the last four years. Overall, Warren painted a bleak picture of the consequences of crypto-related crimes and highlighted the need for increased regulation and oversight.
During the hearing, Senator Elizabeth Warren also took the opportunity to promote her bipartisan bill called the Digital Assets Anti-Money Laundering Act (DAAMLA). The bill aims to close loopholes in anti-terrorist funding and subject key players in the digital asset industry to stricter regulations. Warren mentioned that the bill has bipartisan support from 20 senators and called for its passage to address the growing concerns around cryptocurrency being used for illicit activities. She emphasized the importance of taking action to prevent terrorist financing through crypto, especially in light of recent events like the terrorist attack in Israel where Hamas claimed the lives of over 1200 people.
As Warren continues to criticize cryptocurrency and advocate for stronger regulation, she faces opposition from pro-crypto voices like Republican candidate John Deaton in her upcoming Senate race. While Warren’s stance on crypto may not resonate with everyone, her arguments highlight the serious risks and challenges associated with the use of cryptocurrency in illicit activities. By raising awareness about the threats posed by crypto usage, Warren aims to push for stricter oversight and measures to combat money laundering, terrorism financing, and other criminal activities facilitated by digital assets. The debate over cryptocurrency regulation is likely to intensify as policymakers grapple with balancing innovation and security concerns in the evolving digital economy.
