Binance has come under the scrutiny of the US government for its alleged support of Hamas crypto transactions. But US lawmakers have also recently singled out Tether for its alleged role in financing the militant group.

Senator Cynthia Lummis and Representative French Hill addressed Tether’s involvement in a letter to US Secretary of Justice Merrick Garland. The lawmakers referred to media reports that Binance and Tether enabled crypto donations to the UN-designated terrorist group Hamas.

A recent Wall Street Journal report revealed how cryptocurrencies had allegedly been used to fund three prominent organizations in the Middle East. Since at least August 2021, Hamas, the Palestinian Islamic Jihad and Hezbollah had received donations in cryptocurrencies.

Lummis and Hill expressed concern that Binance indiscriminately onboarded suspicious parties as a foreign, unregulated exchange. These entities are believed to have been contact with Hamas, hence the seizure of their accounts by Israeli authorities.

BeInCrypto previously reported the allegations against Binance. The exchange said a related Reuters report missed out vital facts and that it had already done more than other exchanges to fight terrorism financing.

Still, the accusations are not trivial: supporting terrorism due to a lack of anti-money laundering controls. It appears that blockchain technology gave organizations new ways to fund activities outside the traditional financial system, as described in a recent Chainalysis crypto crime report.

The rising use of blockchains for illicit activity shows the increasing importance of crypto regulations. Robust rules will be the only way to ensure that these platforms are not misused for illegal or harmful activities.

USDT issuer Tether did not escape accusations of sanctions violations. It allegedly didn’t block wallets linked with Hamas in time.

Read more: 8 Best Crypto Wallets to Store Tether (USDT)

Just like Binance, Tether reportedly cooperated with Israeli authorities to freeze Hamas accounts. Tether responded to the allegations:

“We have proactively collaborated with 31 law enforcement agencies across 19 jurisdictions to curb malicious activities.”

So far $873,000 has been seized. But US lawmakers are demanding swift action from the US Department of Justice (DoJ).

The DoJ has been investigating Binance since 2018 for possible violations of money laundering regulations. However, the lack of clarity around its jurisdiction over the exchange has repeatedly delayed investigations.

Read more: Binance vs. Binance.US: A Detailed Comparison

Lummis and Hill previously advocated for clearer crypto regulations. Lummis proposed a cryptocurrency bill and continues to lobby for comprehensive legislation in Congress.

Do you have something to say about Binance and Tether finding themselves under investigation for allegedly allowing Hamas crypto transactions or anything else? Please write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).

The post US Lawmakers Accuse Binance and Tether of Enabling Hamas Funding appeared first on BeInCrypto.

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