- Senator Elizabeth Warren warned that cryptocurrency enables rogue states, terrorists, and criminals to raise funds on an unprecedented scale.
- Warren cited input from military leaders that pig butchering scams involving crypto scammed 40,000 Americans out of $35 billion in 2022.
- Warren believes legislation like her Digital Asset Anti-Money Laundering Act is needed to curb illicit uses of cryptocurrency.
Senator Elizabeth Warren recently warned about concerning uses of cryptocurrency during a Senate Committee on Armed Services hearing. She discussed how crypto is enabling rogue states, terrorists, and criminals to raise funds like never before.
Warren’s Statements on Crypto Crime
During the March 21st hearing, Warren issued a stark warning about cryptocurrency being used to finance terrorism and facilitate pig butchering scams. In pig butchering scams, scammers gain a victim’s trust, convince them to provide large sums of money, and then disappear with the funds.
According to leaders of the US armed forces who spoke with Warren, pig butchering scams involving crypto affected over 40,000 American victims and caused the loss of $35 billion in 2023. They agreed that limiting criminal exploitation of cryptocurrency enhances international security.
Warren asserted that crypto is “helping rogue states, terrorists, and criminal organizations fund their operations on a scale we have never seen before.” She touted her bipartisan bill, the Digital Asset Anti-Money Laundering Act, as a solution to rein in crypto-based crime.
Warren’s Proposed Legislation
The Digital Asset Anti-Money Laundering Act aims to curb illicit uses of crypto through strengthened know-your-customer protocols, expanded AML regulation of cryptocurrency, and other requirements. According to Warren, the legislation would “put a stop” to rogue states, terrorists, and criminals exploiting cryptocurrency.
Conclusion
During a Senate hearing on national security issues, Senator Elizabeth Warren issued a strong warning about cryptocurrency’s role in facilitating terrorism financing and fraud. She cited input from military leaders on the gravity of pig butchering scams involving crypto. Warren believes legislation like her Digital Asset Anti-Money Laundering Act is imperative to limit the abuse of cryptocurrency by bad actors.
