U.S. Sen. Shelley Moore Capito (R-WV) is seeking information from the U.S Treasury Department on designated foreign terrorist organizations (FTOs) financing terrorist activities with crypto assets.
In a letter to Brian Nelson, the U.S. Treasury Department’s Under Secretary for Terrorism and Financial Intelligence, Capito asked the Treasury to make relevant information regarding the scope of digital asset financing used by FTOs available to Congress. She also wanted to know what steps the department can make to address this illicit activity.
“On October 7, 2023, the world witnessed a shocking and unthinkable terror attack on Israel. As the world, the American people, and Congress began to try and understand how the attacks happened, the focal point has become how FTOs receive funding,” Capito wrote. “While I know that the use of digital assets is only one of many illicit funding sources for FTOs, the ambiguity and lack of regulation regarding how cryptocurrency changes hands raises serious concerns that must be addressed.”
The senator asked Nelson to reply to a series of questions, including: Has Treasury begun an independent and comprehensive investigation into the extent FTOs are reportedly avoiding sanctions through the use of digital assets, particularly actors funding Hamas and affiliated organizations?
Further, Capito asked that the Treasury conduct an investigation, if it has not done so already, and create a report to be made available to Congress.
In addition, she asked what steps the Treasury is taking to address illicit activity given the evolving threat posed by FTOs as well as state actors utilizing digital assets and mixers to circumvent global sanctions.