UNCHAINED: How Much Money Are Terrorists Actually Raising in Crypto?
CoinDesk Podcast Network
Combating Terrorist Financing through Cryptocurrencies
This chapter examines the challenges and gaps in combating terrorist financing through cryptocurrencies, emphasizing the importance of cooperation between law enforcement and exchanges. It discusses the tactics used by entities like Hamas and North Korea, the need for cybersecurity measures, and the development of compliance tools using blockchain technology.
Here’s why it’s difficult to calculate exactly how much money terrorists are raising in crypto.
The recent Wall Street Journal article that claimed Hamas raised $130 million via cryptocurrency has sparked considerable debate, especially after Sen. Elizabeth Warren used it as her sole source to ask for tighter regulations around crypto. However, the veracity of this claim has come under scrutiny.
Yaya Fanusie, Jessi Brooks, and Andrew Fierman delve into the veracity of reported figures, the methodology behind them, and the subsequent industry responses that sought to correct the public record. They examine the political implications of cryptocurrency, its use in funding organizations, and the nuanced role of stablecoins in this digital economy. Additionally, they address the broader challenges in regulating crypto to prevent illicit funding, emphasizing the need for factual accuracy and a comprehensive approach to understanding and tackling such complex issues.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.
Show highlights |
- How the Wall Street Journal article claimed that Hamas and other militant groups in Palestine raised $130 million via crypto
- Why Yaya, who spent some time in his career doing research on terrorist financing, found those numbers odd
- Why Jessi believes that there's been a loss of focus on facts and accuracy
- Andrew's explanation of the post by Chainlaysis that corrected the record
- Why it's so difficult to make a confident assessment of how much money is being funneled to terrorist groups
- Whether crypto has become politicized
- Why is it so important to focus not only on the crypto fundraising but also the other avenues, according to Jessi
- The role of USDT and other stablecoins in fundraising terrorist organizations
- Tow North Korea is a much more sophisticated actor than Hamas in its know-how about crypto
- How the government has tried to respond to the illicit usage of crypto, such as the OFAC sanctions on Tornado cash
The challenges to creating regulations to prevent the use of illicit activity in crypto
Thank you to our sponsors! Crypto.com | LayerZero | Popcorn Network
Guests |
Yaya Fanusie, Director of anti-money laundering and cyber risk at the Crypto Council for Innovation.
Previous appearance on Unchained:
How Widespread Is Money Laundering in Crypto?
Hamas has been experimenting with crypto for years: Yaya Fanusie, appearance on FOX Business
Jessi Brooks, CCO and Legal Officer at Ribbit Capital.
Previous appearance on Unchained: How This DOJ Strike Force Hunts Down Cryptocurrency Criminals
Andrew Fierman, Head of Sanctions Strategy at Chainalysis
Links |
Fundraising report and corrections
WSJ:
Hamas Militants Behind Israel Attack Raised Millions in Crypto
Cryptocurrency Feeds Hamas’s Terrorism
Questioning Two Senators on Crypto Terrorism
Washington Post:
U.S. to warn crypto firms against financing Hamas, terror groups
FT: Israel orders freeze on crypto accounts in bid to block funding for Hamas
Fortune: Stricter verification laws in the U.S. won’t stop international terrorists from using crypto
DOJ: Global Disruption of Three Terror Finance Cyber-Enabled Campaigns
Elliptic:
Setting the record straight on crypto crowdfunding by Hamas
How Hamas has utilized crypto, and what may be coming
Chainalysis:
Cryptocurrency and Terrorism Financing: Correcting the Record
DOJ Takedowns Terrorism Financing with Blockchain Analysis
Nic Carter Twitter thread: Can crypto-twitter OSINT outperform the WSJ’s chain analysis?
Nic Carter Tweet: Liz Warren wyd?
Tornado Cash sanctions:
Bitcoin News: Snoop Dogg, Steve Aoki, Logan Paul, and Beeple Dusted by OFAC-Banned Tornado Cash Transactions
Previous coverage of Unchained on Tornado Cash:
Is This the End of DeFi? Why the US Government Is Going After Tornado Cash
The Chopping Block: ‘Code Is Law’ Is ‘Obviously Not How Anything Works Ever’
The Chopping Block: Why DeFi May Be Over-Complying With Tornado Cash Sanctions
Preston Van Loon on Ethereum’s Merge and His Lawsuit Against Treasury
Given the Sanctions on Tornado Cash, Is Ethereum Censorship Resistant?
The Chopping Block: Did OFAC Overstep by Sanctioning Tornado Cash?
Tornado Cash Sanctioned. Did the Government Overstep Its Bounds?
Unchained: Tornado Cash Cofounder Arrested, Another Sanctioned by U.S. Government
Crypto anti-money laundering bill:
The Digital Asset Anti-Money Laundering Act of 2023 Senators Elizabeth Warren and Roger Marshall
CoinDesk: Senator Elizabeth Warren’s Crypto Money Laundering Bill Gains Momentum as More Sign On
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Unchained Podcast is Produced by Laura Shin Media, LLC. Distributed by CoinDesk. Senior Producer is Michele Musso and Executive Producer is Jared Schwartz.
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