According to Brian Nelson, a U.S. Treasury official, Palestinian militant groups, notably Hamas, still show a preference for traditional financing methods over cryptocurrencies.

US Treasury Official Says Cryptocurrencies Used in Terror Financing

U.S. Treasury official Brian Nelson clarified that cryptocurrencies played a minor role in funding groups like Hamas and Palestinian Islamic Jihad, debunking earlier reports suggesting substantial crypto funding. Speaking before the House Financial Services Committee on February 14, Nelson explained that the figures mentioned in The Wall Street Journal did not accurately reflect the amounts directed specifically to Hamas and Palestinian Islamic Jihad. He suggested that the reported numbers likely represented the total funds held in wallets rather than funds directly funding these militant groups.

Brian Nelson’s clarification came after Representative Tom Emmer sought to understand whether the reported figures reflected the total holdings in wallets or funds directed to Hamas and Palestinian Islamic Jihad. Nelson confirmed the likelihood of the former, stating that terrorist groups still prefer traditional financial channels.

During the committee hearing, Emmer questioned the actual amount of cryptocurrency retrieved by militant groups, to which Nelson responded that it was expected to be minimal. Emmer sought confirmation that Hamas’s use of crypto was relatively minor compared to widely circulated reports, to which Nelson agreed.

Emmer also pressed Nelson on the Treasury’s responsibility to correct misinformation regarding crypto and terrorist financing, citing concerns about lawmakers basing decisions on false figures. Nelson assured that the Treasury was actively monitoring terrorist exploitation of cryptocurrencies and emphasized the need for additional resources to combat illicit finance within virtual asset markets.

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