Hamas Hardly Uses Crypto for Funding: US Treasury

The department’s findings highlighted that terrorist organizations still resort to traditional financing methods, refuting previous reports.

Hamas soldier squatting next to a few small crypto coins.
Created by Gabor Kovacs from DailyCoin
  • The United States Treasury Department has debunked claims that crypto provided financial support to terrorist organizations.
  •  U.S. Majority Whip Tom Emmer has called for more accuracy in legislative acts.
  • The Treasury Department has called for enhanced regulations to target the risks associated with the industry.

The United States has consistently raised concerns about the crypto industry, flagging it as providing avenues for malicious actors to circumvent sanctions and facilitate illicit activities. One major allegation regulators and lawmakers have made recently is the extensive use of crypto by Hamas in the ongoing Israel-Palestine war, prompting calls for intensified regulations.

However, in a surprising twist, new findings suggest that these claims may have been exaggerated, clearing the industry’s name of wrongdoing.

U.S Treasury Clears Hamas Crypto Ties

On Wednesday, February 14, U.S. Treasury’s Undersecretary for Terrorism and Financial Intelligence Brian Nelson testified to the overestimation of Hamas’s reported crypto use, emphasizing that it only constituted a minimal fraction of the group’s funding.


Nelson asserted that the proven numbers in the Hamas-crypto link contradict the broader claims that the organization had gotten millions of dollars in crypto, confirming that such groups still rely on traditional financing methods.

“We also assess that terrorists still prefer, frankly, to use traditional products and services,” he stated.

Speaking on the reports, House Majority Whip Tom Emmer slammed senators for writing legislation based on inaccurate reports, calling on the treasury to release their findings in such cases.

Nelson, however, stated that while the use of digital assets remains a small fraction, terrorist groups may continue to turn to the asset class to raise, transfer, and store their illicit proceeds.


His statement echoed the broader stance of the Treasury Department, highlighting the growing concerns associated with the industry.

Treasury Raises Alarm Over Crypto 

Over the past months, the Treasury has persistently lobbied for expanded authority over the crypto industry and implementing stricter regulations.

Most recently, the commission unveiled its 2024 National Risk Assessment, flagging crypto and decentralized finance (DeFi) as facilitators of illicit activities among cybercriminals, such as North Korean hackers and ransomware criminals. 

While the Department recognized cash, commonly the U.S. dollar, as predominant in such activities, it highlighted the increasing adoption of the asset class as a concern necessitating responsive actions.

Secretary Janet Yellen has also voiced concerns about the risks associated with stablecoins, emphasizing their volatile nature and the threats they pose to the stability of the U.S. financial system.

The Treasury Department has now urged the U.S. Congress to enact swift legislative actions targeting the enforcement of regulatory standards for the industry.

On the Flipside

  • Despite the calls for strengthened regulations by the U.S. Department of the Treasury, specific outlines highlighting the regulations they seek have not yet been provided.
  • U.S. Senator Elizabeth Warren has labeled crypto “a threat” to the United States.
  • On February 13, the Washington-based Blockchain Association opposed a crypto bill introduced by 19 US senators, asserting that it threatened the domestic markets rather than the illicit actors it targeted. 

Why This Matters

The refutation of the link of cryptocurrencies to terror financing restores integrity to the industry, countering the prevalent perception of its widespread misuse by malicious actors. However, there is still a need for regulatory standards that address the escalating risks to prevent the further exploitation of the asset class. 

Read more about the reports of the use of crypto in terror financing and connection to Binance:
Israel Cracks Down on Binance Crypto Accounts Tied to Hamas

Find out more about the performance of this altcoin so far in 2024:
SUI Targets $2 All-Time High Recovery Amidst Market Rally

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.