US Treasury plans to designate crypto mixers as money-laundering hubs: Report

The United States Treasury Department is reportedly planning to expand its sanctions to designate cryptocurrency mixers as money-laundering hubs following Hamas’ attack on Israel.

According to an Oct. 19 report in The Wall Street Journal, Deputy Treasury Secretary Wally Adeyemo said the addition of crypto mixers to entities sanctioned by the U.S. government was aimed at combating digital assets being exploited by “state-affiliated cyber actors, cyber criminals, and terrorist groups.” He cited Hamas — the group responsible for the Oct. 7 attack on Israel — and the Palestinian Islamic Jihad — the organization Israel has blamed for an Oct. 17 attack on a Gaza hospital — illicitly using crypto. 

The report followed concerns voiced by U.S. lawmakers surrounding terrorist organizations allegedly being financed by crypto. On Oct. 17, more than 100 members of Congress called on the administration of U.S. President Joe Biden to “swiftly and categorically act to meaningfully curtail illicit crypto activity.” Treasury officials also added a Gaza-based crypto operator allegedly tied to Hamas to its list of Specially Designated Nationals on Oct. 18.

This is a developing story, and further information will be added as it becomes available.