Chainalysis Highlight The Question “Crypto Usage for Terror Financing?”

Chainalysis disputes accusations of terrorist usage of cryptocurrencies, while lawmakers voice reservations about cryptocurrency’s role in national security.

After the latest Hamas incident in Israel, a bitcoin analytics firm called Chainalysis has been inundated with inquiries regarding how terrorist organizations may be using cryptocurrencies. They stated that certain reports on this subject may be too metric and use “flawed analysis.”

After Hamas’ attack on Israel, various media sites attempted to estimate the amount of bitcoin that may have been utilized for this reason.

Senator Elizabeth Warren and more than a hundred other legislators cited a Wall Street Journal revelation about Hamas’s use of bitcoin and demanded answers from President Joe Biden’s administration.

On its website, it stated, “Terrorist organizations have historically used and will likely continue to use traditional, fiat-based methods such as financial institutions, hawalas, and shell companies as their primary financing vehicles.”

Warren co-authored an opinion piece in the Wall Street Journal on Wednesday evening with Sen. Roger Marshall, a Republican from Kansas, who stated, “Terrorists, rogue nations, drug traffickers, and other criminals are using cryptocurrency to endanger our allies and U.S. national security.”

According to Chainalysis, effectively analyzing the movement and quantity of funds associated with terrorism requires two fundamental components: first, measuring the financial resources directly under the control of a terrorist organization, and second, identifying the intermediaries or service providers responsible for facilitating the transfer of funds associated with terrorist financing.

According to Chainalysis, while media outlets indicate that $82 million in bitcoin was raised for terror financing, only a small percentage of these money were likely meant for terrorist activity. The vast majority of monies handled by the suspected service provider were unrelated.

More From The Kangaroo Times

Related Posts