Legislators Urge DOJ to Investigate Use of Crypto-Assets to Fund Terrorism

Senator Cynthia M. Lummis (R-WY) and Representative French Hill (R-AR) urged the DOJ to evaluate the extent to which Binance and Tether are supporting terrorism through violations of federal law on material support to entities engaged in terrorism, applicable sanctions laws, and the Bank Secrecy Act.

In a Letter addressed to U.S. Attorney General Merrick Garland, the legislators called for "swift action . . . to choke off sources of funding to the terrorists currently targeting Israel." The legislators expressed concern over reports that these crypto asset intermediaries have facilitated significant illicit finance activity, including terrorism financing to Hamas, over the past two years. The legislators say the problem should be addressed by the DOJ to (i) conduct investigations into ongoing illicit activities and (ii) reach a charging decision that reflects culpability.