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May 3, 2024US lawmakers warn of Iranian crypto miners threatening national security
United States Senators Elizabeth Warren and Angus King have raised concerns about potential national security threats posed by cryptocurrency miners in Iran.
Letter to Biden Administration
In a letter dated May 1 addressed to National Security Advisor Jake Sullivan, Defense Secretary Lloyd Austin, and Treasury Secretary Janet Yellen, the senators urged the Biden administration to investigate possible connections between the Iranian government and local crypto miners. They also called for an assessment of how digital assets might be utilized to circumvent U.S. sanctions.
Senators Warren and King alleged that Iran has utilized funds from cryptocurrency mining to finance terrorist organizations and its April attack on Israel. They emphasized the direct threat posed to national security by Iran’s use of crypto to evade sanctions.
The senators requested U.S. officials to provide data on the revenue generated by crypto miners in Iran and how it may be used for money laundering. They also urged for a response to address threats to U.S. national security posed by this issue.
Iranian Preference for Bitcoin
Citing a report from an Iranian think tank, the senators mentioned Iran’s preference for “newly-minted” Bitcoin, which they claimed to be less traceable. Reports suggested that Iranian Bitcoin miners could have generated up to $1 billion in revenue in 2021.
Iran has been subject to sanctions imposed by the United States and international authorities since 1979. Although Iranian officials previously cracked down on crypto mining due to concerns about electricity consumption, the practice was legalized in 2019.
Senator Warren has been vocal about her concerns regarding cryptocurrency, associating it with illicit activities such as drug trafficking and terrorism. She is known for her anti-crypto stance and will likely face off against Republican candidate and crypto lawyer John Deaton for her Massachusetts Senate seat in the upcoming November election.
