U. S. Senators Elizabeth Warren and Angus King raised concerns about national security threats from cryptocurrency mining in Iran.
U.S. Legislators raise fears about Iran’s digital asset use
In a letter dated May 1 to key officials such as National Security Advisor Jake Sullivan and Treasury Secretary Janet Yellen, the legislators raised fears that Iran was using digital assets to bypass U.S. sanctions, possibly funding groups that threaten U.S. security. The letter emphasizes the urgent need of the Biden administration to tackle the increasing connections between the Iranian government and the local crypto miners.
With what the senators said, Iran has used cryptocurrency mining to bypass sanctions and fund actions against U.S. interests, such as the attack on Israel in April. They claim that the Iranian military used crypto to finance well-known terror groups, including Hezbollah, stressing the direct threat to national security.
The letter is a call to U.S. officials to act immediately to prevent the exploitation of digital assets by Iran for illicit purposes and for them to provide information on the money generated by crypto miners in Iran and their possible involvement in money laundering schemes.
The Increasing Dependence of Iran on Cryptomining
Iran has become one of the major locations for Bitcoin mining, and its central bank is alleged to funnel cryptocurrency to support the country’s economy. However, the growth of crypto mining in the country is stressing the country’s grid, resulting in irregular suspensions of mining activities due to concerns about power consumption. In addition, the senators stressed the fact that Iran is known for crypto laundering and allegedly connected to ransomware activities, making concerns about Iran’s use of digital money for sanctions evasions even more severe.
They wrote in the letter: “Cryptomining has become such a big industry in Iran that it has strained the country’s energy grid, leading the Iranian government to temporarily suspend crypto mining several times after it was blamed for massive blackouts.”
Warren and King have tasked senior military and financial officials with explaining the measures being taken to combat national security threats in connection to Iran’s crypto mining activities. The letter comes on the day of the Senate Armed Services Committee global threats hearing, which emphasizes the need to make a decision regarding Iran’s increasing use of cryptocurrency. While Iran is still struggling with economic sanctions, the growing dependence on revenue from crypto mining only highlights the issues of digital assets in international security.
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