Benzinga - Rep. Tom Emmer (R-Minn.) asked top Treasury officials regarding the use of cryptocurrency by Hamas for fundraising.
What Happened: Emmer tweeted on X, "Today, I asked Treasury’s Head of FinCEN and OFAC about the WSJ’s reporting on Hamas’s digital asset fundraising campaign. Undersecretary Nelson CONFIRMED, on the record, that the WSJ’s numbers were inaccurate and that crypto was not even a popular tool for Hamas terrorists."
Today, I asked Treasury's Head of FinCEN and OFAC about the WSJ's reporting on Hamas's digital asset fundraising campaign.Undersecretary Nelson CONFIRMED, on the record, that the WSJ's numbers were inaccurate and that crypto was not even a popular tool for Hamas terrorists. pic.twitter.com/Y2nSJfe3Lk
— Tom Emmer (@GOPMajorityWhip) February 14, 2024
This statement came after reports had implicated cryptocurrency as a facilitator in the aftermath of terrorist attacks in Israel by Hamas.
Brian Nelson, the Treasury’s undersecretary for terrorism and financial intelligence, acknowledged to the House Financial Services Committee that the initial reports exaggerated the use of crypto by terrorists.
“We don’t expect the number is very high. To be clear, Hamas is using crypto in relatively small amounts compared to what’s been widely reported.” Nelson said, adding that the preference among terrorist groups is traditional financing methods over digital assets. “We also assess that terrorists still prefer, frankly, to use traditional products and services.”
Emmer asked Nelson about whether digital assets are not the preferred means of terrorist financing. "I want to be clear: digital assets were not even a popular tool for Hamas or the Palestinian Islamic Jihad, correct?"
Nelson responded, "I think that is correct and one of the reasons that is because of our work with our counterparts in Israel prior to October 7th…"
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Why It Matters: Although Nelson reassured Emmer about the limited use of cryptocurrencies by terrorist organizations, he had previously stated in his prepared comments that the government maintains its attention on undermining these groups’ capacities. He said, “we are focused on disrupting these groups’ ability to leverage digital assets."
Price Action: At the time of writing, Bitcoin (CRYPTO: BTC) was trading at $52,368, up 5.12% over the past 24 hours, as reported by Benzinga Pro.
Image Via Shutterstock
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