- U.S. Sen. Elizabeth Warren has requested the Biden administration to provide insights into Iran's cryptomining operations.
- Warren strongly believes that the ongoing activity by the Iranian government threatens U.S. national security
- She emphasized the need for stringent AML regulations in crypto, as bad actors bypass U.S. sanctions and earn millions.
U.S. Sen. Elizabeth Warren has always been a strong cryptocurrency critic. And in a recent development, she has highlighted yet another ill of cryptocurrency.
In a letter, co-signed by Sen. Angus King, to the Biden Administration—Defense Secretary Lloyd Austin, Treasury Secretary Janet Yellen, and National Security Advisor Jake Sullivan, Warren requested to provide insights into Iran's crypto mining operations as she strongly believes that the ongoing activity by the Iranian government threatens U.S. national security.
“Iran legalized the cryptomining industry in 2019.1 In the five years since, Iran has raised millions of dollars through mining crypto—a steady revenue source that allows it to purchase imports, move funds domestically and internationally, and fund Hamas and other terrorist organizations,” Warren wrote in the letter.
Furthermore, Warren and King noted that Iran is one of the world's largest Bitcoin producers and cryptomining has grown increasingly lucrative for the nation. Beyond its mining revenues, Iran is using crypto to launder money. Its major crypto exchange, Nobitex, advises on evading sanctions on its website. Over four years, Binance processed $8 billion in Iranian crypto transactions, primarily through Nobitex. Moreover, the Iranian government has ties to ransomware gangs attacking U.S. entities.
Additionally, in a May 2 press release, at a U.S. Senate Armed Services Committee hearing, Warren once again emphasized the national security risks posed by inadequate regulation of cryptocurrencies, including the unintentional financing of rogue nations.
Warren emphasized the need for stringent anti-money laundering regulations in crypto, noting that bad actors are bypassing U.S. sanctions and earning millions annually as intermediaries in the crypto ecosystem.
She also discussed with Director of National Intelligence Avril D. Haines how nations like Iran use crypto to circumvent sanctions, strengthening American adversaries. Haines confirmed Iran's significant crypto transactions and reported that over half of North Korea's foreign currency revenues are derived from crypto activities.
Edited by Harshajit Sarmah
