U.S. Senator Labels Crypto as a Threat, Links to North Korea’s Nuclear Funding

• U.S. Senator Elizabeth Warren labels cryptocurrency as a “new threat,” citing concerns about its use in terrorist financing and drug trafficking.
• Warren alleges that North Korea is using crypto to fund half of its nuclear weapons program.
• JPMorgan Chase CEO Jamie Dimon suggests closing down crypto if he were the government.

U.S. Senator Elizabeth Warren reiterated her concerns about cryptocurrency, labeling it as “a new threat.” She alleged that crypto is being utilized for terrorist financing and drug trafficking.

In a recent interview on NBC’s Squawk Box, Senator Warren, in her attempt to regulate crypto, sounded the alarm on crypto, stating:

There is a new threat out there. It’s crypto. It is being used for terrorist financing. It is being used for drug trafficking.

Warren went further, alleging that North Korea is using cryptocurrency to “pay for about half of its nuclear weapons program.”

Warren’s worries find support in reports from blockchain intelligence firms. Earlier this year, TRM Labs revealed that North Korea-linked hackers stole $200 million worth of cryptocurrency, while Chainalysis reported experts agreed that these stolen assets fund the country’s nuclear weapons programs.

During a recent Senate Banking Committee hearing, Warren, alongside JPMorgan Chase CEO Jamie Dimon, called for stronger government regulations on cryptocurrencies. Warren questioned Dimon about his views on crypto, to which Dimon responded by stating, “If I was the government, I’d close it down.”

Warren also sought the opinions of other bank executives, including Wells Fargo CEO Charles Scharf, Bank of America CEO Brian Moynihan, and Goldman Sachs CEO David Solomon, who all agreed that crypto should adhere to the same anti-money laundering rules as traditional banks.

Warren’s concerns are part of a broader effort in Washington to regulate the crypto industry, with her proposed bill, the Digital Asset Anti-Money Laundering Act. This bill aims to extend Bank Secrecy Act requirements, including know-your-customer rules, to various participants in the crypto space.

Senator Elizabeth Warren is known to have a strong anti-crypto stance, actively working to regulate and combat crypto-related activities. In October, Warren, along with 28 senators and 76 House lawmakers, in a bipartisan letter, urged the White House and Treasury to take action against crypto crimes, citing reports of Hamas raising funds through digital currency.