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29/07/24
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Warren Expresses Concern Over the Use of Crypto Mining Facilities Owned by Foreign Nationals for Spying
Four days ago, Senator Elizabeth Warren expressed herself again regarding the dangers of crypto mining operations of entities from other countries in the United States. She raised this point while questioning Paul Rosen of the U.S. Department of the Treasury at a hearing of the Senate Committee on Banking, Housing, and Urban Affairs.
According to Warren, crypto mining facilities present environmental and national security threats in the U.S., even as citizens of China, as well as those with direct ties to the Chinese government, own about 33 percent of those facilities, citing a report by a blockchain analytics company.
“Increasingly, foreign companies are building cryptomining facilities on U.S. soil… They’re loud, they’re hot, and they suck up a ton of electricity, which can crash the power grid. And that’s why many countries have banned cryptomining, leading more foreign companies to set up shop here in the United States,” said Warren.
While confirming Warren’s concerns, Rosen noted the possibility of using crypto mines for espionage, presenting a national security threat to the nation’s energy resources and sector. Furthermore, Rosen said the government needs to modify anti-money laundering laws so that people of other countries cannot make secret investments, such as using cryptocurrency to buy cryptocurrency mining facilities in the country without the knowledge of the authorities.
Warren mentioned President Biden’s order, which required Wyoming-based MineOne, owned by Chinese nationals, to divest its ownership and remove crypto mining equipment from the premises two months ago.
She noted the possibility of using the technology inside the mine for surveillance and asked Rosen if the crypto mine could possibly be used for spying on U.S. military operations and nuclear weapons systems since it was located close to a missile base housing intercontinental ballistic missiles.
“There is a generalized concern that sophisticated equipment in proximity to sensitive facilities can be used for espionage,” said Rosen. Senator Warren concluded by calling on Congress to pass laws to provide tools for the Department of Treasury to prevent foreign countries from using cryptocurrency to evade sanctions and launder money.
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