law fire® Readers who have been following the war between Hamas and Israel may have read media reports about how cryptocurrencies have played a role in funding Hamas (as well as Palestinian Islamic Jihad and Hezbollah). According to the W.the entire street diary: Hamas Lightning over Israel “The question has been raised as to how the group financed the surprise operation. One answer: cryptocurrency.” Add:
"During the year leading up to the attacks, three militant groups – Hamas, Palestinian Islamic Jihad and its Lebanese ally Hezbollah – received large amounts of funds through cryptocurrencies, according to a review of Israeli government seizure warrants and reports from blockchain analysis".
Hamas has accumulated considerable financial resources. France 24 reports:
“Has Forbes magazine ranked in 2014 As “one of the richest terrorist groups in the world,” it has an estimated annual budget of nearly $1 billion. Most of the money comes from “expatriates or private donors from the Gulf region,” notes the German news channel. german wave.“
What can the United States and other countries do about the problem of terrorist financing? The last installment of LENS test series has some answers for you.
In his essay, “Financial jihad: combating the use of virtual assets in the financing of terrorism” Duke Law 3L Madison Cash does an excellent job of clarifying the issues and, more importantly, offering ideas on how to approach this complicated area. Here is the summary:
Cryptocurrencies have played an increasingly important role in the world of terrorist financing, within the United States and abroad. Many foreign terrorist organizations use a combination of cryptocurrencies and other informal money transfer channels to create an aura of anonymity, while incentivizing and protecting donations. Cryptocurrencies are not as anonymous as they seem, and authorities can and have tracked accounts and payments channeled through virtual asset transfer systems. However, cryptocurrencies, along with informal money transfer systems such as the hawala system, pose a particular threat to the effective investigation and prosecution of terrorist financing. These informal systems are often most powerful in areas controlled by uncooperative foreign powers. To address this gap, the author proposes that the United States foster effective multilateral collaboration within a unified regulatory scheme. Additionally, it should aggressively penalize those who teach terrorist groups how to use cryptocurrencies to raise funds, as well as those intermediaries who facilitate illicit cryptocurrency transfers.
Be sure to read Maddie's full essay found here.
About the Author:
Madison Cash (JD 2024) is a 3L at Duke University School of Law. Growing up, she moved often when she was in the military, but now calls Houston, Texas home. She graduated from Wheaton College with the highest praise, where he completed a double specialization in Spanish and English Literature. During her 1L summer, Madison was a legal intern for the Navy Judge Advocate General's Corps at Commander Navy Region Mid-Atlantic in Norfolk, Virginia. During her 2L summer, Madison worked as a summer associate at Hogan Lovells in Washington, DC. After graduating and passing through the bar, Madison will return to Hogan Lovells and subsequently clerk for Judge David Novak in the Eastern District of Virginia.
At Duke, Madison serves as co-president of the National Security Law Society and is the Notes Editor of Duke Law. Journal of international and comparative law. His note, “Reversing CFIUS: Analysis of the International and Constitutional Implications of the Revised Critical National Capabilities Defense Act" was published in Spring 2023. He is also involved with Duke Law and Technology Review, the Moot Court Board, the LENS Center, and the Legal Writing, Research, and Analysis program.
Remember that we like to say in law fire®: gather the facts, examine the law, evaluate the arguments, and then decide for yourself!
