- Sen. Elizabeth Warren alleged that foreign-owned crypto mining facilities in the US could be used by adversaries to spy on military bases, bring down the power grid, or secretly move money in and out of the country.
- Warren called for stronger anti-money laundering protections to prevent crypto mines from undermining U.S. national security.
- Warren claimed that a third of crypto mining operations in the U.S. are owned by Chinese citizens, including those with direct ties to the Chinese government.
Senator Elizabeth Warren recently suggested that foreign-owned cryptocurrency mining facilities in the US could pose a national security threat. She questioned whether these operations could be used for espionage or to sabotage critical infrastructure.
Warren’s Statements on Foreign-Owned Crypto Mines
Speaking at a Senate Committee hearing, Warren alleged that foreign companies are increasingly building crypto mines in the US that have been banned elsewhere. She claimed a third of US crypto mining operations are owned by Chinese citizens, including some with government ties.
Warren highlighted a recent case where a China-majority owned crypto mine was blocked near an Air Force base over national security concerns. She questioned whether the mine could have been used to spy on military operations. A Treasury official agreed espionage was a general concern with tech near sensitive facilities.
The senator also suggested foreign mines’ connection to the US energy grid could make it vulnerable to blackouts and cyber attacks. The Treasury official concurred this could impact national security.
Warren’s Calls for Stricter Regulation
While noting potential benefits of crypto mining, Warren called it an environmental “disaster.” She wants stronger anti-money laundering rules to prevent illicit activity and foreign adversaries using mines to harm US interests.
Warren claimed foreign nationals have secretly acquired US mines using crypto, bypassing the banking system. She asserted the need to close loopholes allowing such anonymous transactions.
A Treasury official agreed knowing who is buying crypto mines is critical. Warren concluded that Congress should pass laws giving Treasury more tools to regulate crypto.
Conclusion
Warren’s statements reflect ongoing concerns that cryptocurrencies could undermine national security if left unregulated. Her proposals would significantly expand US government oversight of the crypto industry.
