US Senator Elizabeth Warren and Senator Angus King Jr. have raised concerns about Iranian crypto miners with alleged ties to terrorist organizations such as Hamas. In a letter dated May 1, the Senators urged the Biden administration to address Iran’s use of cryptocurrency mining as a way to evade sanctions and fund terrorist activities. They pointed out that Iran has been generating significant revenue through crypto mining, which has allowed them to support Hamas and other groups. The Senators estimated that Iranian Bitcoin mining could have generated as much as $1 billion in revenue in 2021, with the help of 1,000 licenses issued by the Iranian government for cryptocurrency mining units.
The letter also highlighted Iran’s use of cryptocurrency to launder funds and avoid sanctions. The Senators pointed out that the nation’s largest crypto exchange, Nobitex, provided guidelines to users on how to bypass sanctions, resulting in $8 billion worth of Iranian crypto transactions processed by Binance through Nobitex over a four-year period. Additionally, the Iranian military has reportedly had ties with ransomware gangs and used cryptocurrency to fund terrorist groups like Hezbollah during attacks on Israel. The Senators emphasized the need to take action against Iran’s use of cryptocurrency to evade sanctions and fund attacks on Israel, as it poses a direct threat to national security.
The Senators called attention to the fact that Iran legalized the crypto mining industry in 2019, leading to significant revenue generation through mining operations over the past five years. They expressed concern over the impact of this revenue on Iran’s ability to purchase imports, move funds domestically and internationally, and fund terrorist organizations like Hamas. Despite the massive electricity consumption required for these operations, the Iranian Ministry of Industries, Mining and Trade has issued 1,000 licenses for cryptocurrency mining units, further fueling the country’s crypto mining activities.
The letter from the Senators highlighted the ongoing threat posed by Iran’s use of cryptocurrency to evade sanctions and fund terrorism. They stressed the need for the Biden administration to take action to combat Iran’s rampant evasion of sanctions through crypto mining. The Senators also pointed out Iran’s history of using cryptocurrency to launder funds and support terrorist activities, underscoring the importance of addressing this issue to protect national security. Overall, the letter serves as a call to action for increased oversight and regulation of cryptocurrency activities to prevent the misuse of digital assets by hostile actors like Iran.
