Treasury urges crypto companies to ‘prevent’ terrorist financing

Deputy secretary Wally Adeyemo said that the Treasury will engage in helping crypto companies take steps to prevent terrorist financing


Burdun Iliya/Shutterstock modified by Blockworks


The US Treasury’s Deputy Secretary, Wally Adeyemo, has warned crypto firms to ensure that terrorist organizations are not able to use crypto to raise funds.

“Our expectation is that financial institutions and digital asset companies and others in the virtual currency ecosystem will take steps to prevent terrorists from being able to access resources. If they do not act to prevent illicit financial flows, the United States and our partners will,” Adeyemo said in a speech in London on Friday.

The Treasury Department’s deputy secretary added that it’s “committed to engaging” with crypto firms on the steps needed to prevent organizations like Hamas from moving funds.

“But, there are those in the digital asset space who wish to innovate without regard to consequences instead of doing so responsibly, including protecting against illicit financing,” he said.

Read more: Experts anticipate ‘wave’ of crypto seizures following Hamas attacks

Adeyemo’s speech comes a day after Senator Cynthia Lummis and Rep. French Hill addressed US Department of Justice Attorney General Merrick Garland in a letter focused on Binance and Tether.

“We urge the Department of Justice to carefully evaluate the extent to which Binance and Tether are providing material support and resources to support terrorism through violations of applicable sanctions laws and the Bank Secrecy Act,” the two wrote.

They also asked Garland and the DOJ to “reach a charging decision on Binance” and  “expeditiously conclude [their] investigations into the ongoing illicit activities involving Tether.”

Tether, in a post on Thursday, said there’s “no evidence” that it violated sanctions laws or the Bank Secrecy Act. Binance did not return a request for comment.

Lummis and Hill referenced a controversial Wall Street Journal report, though Adeyemo’s speech lacked any mention of it. 

The report from the WSJ — which claimed entities such as Hamas raised millions through crypto based on now-debunked data from Elliptic — spurred over 100 Democrats to pen a letter to the Biden Administration asking for answers on how terrorist organizations are able to raise money through crypto.

Elliptic has since publicly refuted the data used in the WSJ report, claiming that Hamas has not raised millions in crypto. The WSJ report also drew widespread critique from members of the crypto industry. 

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research



Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.


Buried inside Binance’s proof of reserves is proof of diamond hands among its users


Riot Platforms called for the meeting after seeking to acquire Bitfarms via a deal the company ultimately rejected


Scientific reputation should be determined by a decentralized community of scientists, not the validation of higher institutions


Paxos is getting off scot-free after the SEC said it wouldn’t pursue legal action against the company


The Srcful partnership is part of a broader plan to onboard Helium “subnetworks”


Plus, a look into US spot BTC funds six months into trading