United States Senators Elizabeth Warren and Angus King have issued a letter to officials expressing their concerns about the potential national security risks posed by cryptocurrency miners in Iran.
The letter, dated May 1, was addressed to National Security Advisor Jake Sullivan, Defense Secretary Lloyd Austin, and Treasury Secretary Janet Yellen. In their letter, Senators Warren and King called on the Biden administration to provide information regarding possible connections between the Iranian government and local crypto miners, as well as how digital assets could be used to circumvent U.S. sanctions. The lawmakers stated that Iran has utilized funds obtained from crypto mining to finance terrorist organizations and carry out the April attack on Israel.
“The use of cryptocurrency by Iran to evade sanctions directly threatens our national security,” the letter stated. “The Iranian military has utilized cryptocurrency to support known terrorist groups such as Hezbollah, the organization believed to be partially responsible for the drone strike in Jordan in January 2024 that resulted in the deaths of three U.S. service members. Unless action is taken, Iran will continue to exploit cryptocurrency to fund attacks against Israel.”
Senators Warren and King requested that U.S. officials provide data on the revenue generated by crypto miners in Iran, how this revenue could potentially be used for money laundering, and the steps being taken to address threats to U.S. national security. They referred to a report from an Iranian think tank which claimed that the government favored “newly-minted” Bitcoin (BTC) due to its perceived lack of traceability. Reports have suggested that Iranian BTC miners may have generated up to $1 billion in revenue in 2021.
Iran has been subjected to various sanctions imposed by the United States and international authorities since 1979. Although Iranian officials previously cracked down on crypto mining in the country, citing concerns over electricity consumption, the government legalized the practice in 2019.
Senator Warren has consistently voiced her opposition to cryptocurrencies and has linked the technology to illicit drug trafficking, terrorism, and negative impacts on the economy. She is facing reelection in November and is expected to compete against Republican candidate and crypto lawyer John Deaton for her Massachusetts Senate seat.
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