The U.S. Treasury Department is investigating $165 million worth of cryptocurrency transactions that might have supported Hamas, the Palestinian militant group, according to a recent report by the Wall Street Journal. Deputy Treasury Secretary Adewale Adeyemo signed a letter revealing these findings based on examining suspicious activity reports submitted between January 2020 and October 2023.

Adeyemo's letter urged support for legislation to expand the Treasury Department's oversight authority over crypto transactions. It noted that the $165 million figure might not solely be attributed to crypto or Hamas, as financial institutions may have reported the total value of a customer's transactions, including both traditional and digital assets, as being linked to Hamas, even if only a fraction of the reported activity was connected to the group.

The Financial Crimes Enforcement Network (FinCEN) has identified more than 200 cryptocurrency addresses that could be linked to these transactions. The Treasury Department is currently engaged in an ongoing evaluation of the potential risks associated with cryptocurrencies and such services. The focus of the investigation was on transactions registered with U.S. institutions that might have supported Hamas before its October 7 attack against Israel.

U.S. lawmakers have long been discussing crypto's role in terrorist financing to sanction Hamas. A group of lawmakers led by House leaders requested President Joe Biden for more data on Hamas's use of crypto through a letter, raising serious concerns about Hamas's ability to use digital assets to finance its operations. However, it remains unclear how much of the identified digital assets are accessible to or remain in the possession of Hamas.