Warren Raises Alarm on Reports X Enabled Terrorist Fundraising Through Crypto
Warren Warns Stablecoin Loophole in GENIUS Act Could Accelerate Sanctions Evasion and Illicit Finance
“In essence, X allowed its platform to be transformed into a sanctions-evasion service for individuals that threaten the safety of Americans on a daily basis.”
Washington, D.C. – U.S. Senators Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, sent a letter to Treasury Secretary Scott Bessent and National Security Advisor Marco Rubio, pressing the Trump Administration regarding alarming new reporting that X, the social media platform owned by Elon Musk, may be enabling sanctioned terrorists to use the platform for financial gain, including through crypto payments.
“These revelations raise serious questions about whether X is breaking the law and endangering the safety of Americans – and about whether the Treasury Department is prepared for the deluge of illicit, sanctions-evading transactions that will occur if platforms like X are able to create their own stablecoins, as proposed by the GENIUS Act,” wrote Senator Warren.
An investigation by the nonpartisan Technology Transparency Project found that X allowed individuals affiliated with terrorist groups like Hezbollah, al-Qaeda, and the Houthis — all sanctioned under U.S. law — to purchase verification and earn revenue through the platform’s monetization tools. Some even received “ID-verified” badges after submitting government-issued identification and biometric data.
In the letter, Senator Warren presses the Treasury Department on what they knew, when they knew it, and what actions they’ve taken in response. She also warns that if the GENIUS Act — a crypto bill currently under Senate consideration — becomes law without significant changes, it could accelerate sanctions evasion and other illicit activity.
“These reports about terrorist activity on the platform raise obvious questions about X’s compliance with the law, and what its executives may have known about its role as a potential conduit for illegal funds transfers,” Senator Warren continued. “They also raise fundamental questions about how the Treasury Department would enforce our sanctions if the GENIUS Act were to become law in its current form, given that it contains a loophole allowing a private company like X to issue its own stablecoins. If tech platforms are not abiding by OFAC’s restrictions and the Treasury Department is not enforcing them, the GENIUS Act as drafted will turbocharge sanctions evasion and other illicit activity.
Senator Warren has been outspoken about the many flaws in the GENIUS Act, warning that the bill fails to prevent illicit activity and allows Big Tech giants like Elon Musk’s X issue their own private money, all without guardrails needed to keep Americans safe from scams, junk fees, or another financial crash. Senate Democrats have called for a range of anti-corruption and national security fixes, including closing a loophole that could allow companies like X to profit while enabling illicit activity.
###
Next Article Previous Article