United States Senators Elizabeth Warren and Angus King have written a letter to officials, expressing their concerns about the potential national security risks posed by cryptocurrency miners in Iran. The letter, dated May 1, was addressed to National Security Advisor Jake Sullivan, Defense Secretary Lloyd Austin, and Treasury Secretary Janet Yellen. Senators Warren and King called on the Biden administration to provide information regarding possible connections between the Iranian government and local crypto miners, as well as how digital assets could be used to bypass U.S. sanctions. They believe that Iran has been using funds from crypto mining to support terrorist organizations and to carry out attacks, such as the one on Israel in April.
In their letter, the senators emphasized the direct threat to national security posed by Iran’s use of crypto to evade sanctions. They pointed out that the Iranian military has used cryptocurrency to fund known terrorist groups like Hezbollah, which was allegedly involved in a drone strike in Jordan in January 2024 that resulted in the death of three U.S. service members. The senators warned that unless action is taken, Iran will continue to use cryptocurrency to finance attacks against Israel.
To gather more information on the matter, Senators Warren and King requested that U.S. officials provide data on the revenue generated by crypto miners in Iran, how these funds could potentially be used for money laundering, and the government’s measures to address threats to national security. They referred to a report from an Iranian think tank, which stated that the government favored “newly-minted” Bitcoin (BTC) due to its perceived lower traceability. Reports have suggested that Iranian BTC miners may have earned up to $1 billion in revenue in 2021.
Iran has been subjected to various sanctions imposed by the United States and international authorities since 1979. While the Iranian government previously cracked down on crypto mining in the country, citing concerns about electricity consumption, it legalized the practice in 2019.
Senator Warren has consistently voiced her opposition to cryptocurrencies and has associated the technology with illicit drug trafficking, terrorism, and negative impacts on the economy. She is currently up for reelection in November and is expected to face Republican candidate and crypto lawyer John Deaton for her Massachusetts Senate seat.
The concerns expressed by lawmakers like Senators Warren and King have contributed to the push for stricter regulations on cryptocurrencies in the United States.