Senators Urge Biden Administration to Address Iran’s Crypto Mining Activities
Today, Senators Elizabeth Warren and Angus S. King, Jr. sent a formal letter to top Biden administration officials regarding US efforts to combat Iran’s use of crypto mining to evade international sanctions.
The letter, addressed to Secretary of Defense Lloyd Austin, National Security Advisor Jake Sullivan, and Treasury Secretary Janet Yellen, expresses concerns about Iran’s increasing involvement in the crypto mining sector since its legalization in 2019.
Warren has been vocal about the risks posed by digital assets in recent weeks, specifically in relation to evading sanctions, and has penned multiple letters on the subject.
The letter highlights Iran’s strategic engagement in the mining sector, which reportedly generates significant revenue for the regime. This revenue supports both domestic and international financial transactions and allegedly funds terrorist groups like Hamas, posing a threat to international peace and US national security.
According to sources cited in the letter, Iran is one of the top global producers of Bitcoin, accounting for up to seven percent of the worldwide market. The energy demands of crypto mining have strained Iran’s power grids, leading to occasional blackouts.
One particular concern raised in the letter is the allegation that the Iranian government requires local crypto miners to sell their mined assets to the central bank. This practice could facilitate less traceable transactions for imports and exports, potentially bypassing the scrutiny of international banking systems.
Recent escalations, such as drone and missile attacks on Israel allegedly carried out by Iran, have raised concerns over the use of crypto to fund military activities. The Treasury Department is currently investigating significant crypto flows linked to militant activities, totaling $165 million over the past three years.
The Senators have requested detailed information from the administration by May 16, 2024, regarding the revenue generated from crypto mining in Iran, the government’s involvement in these operations, and the measures being taken to address these threats.
This inquiry underscores the complexities of global finance in the digital age, especially as digital currencies provide new avenues for sanctioned states to circumvent international restrictions. The administration’s response to these issues will likely influence future US policies on crypto and its role in global security.
