Elizabeth Warren Claims Foreign Governments Utilize Crypto Mines for US Military Espionage

Senator Elizabeth Warren has voiced serious concerns about foreign nations using digital asset mining facilities for espionage. Speaking at a Senate Committee on Banking, Housing, and Urban Affairs hearing, Warren highlighted the potential threat posed by cryptomines operated by adversarial countries.

“Foreign adversaries are using cryptomines to spy on US military operations. That is an obvious national security risk. But it isn’t the only risk. Foreign-owned cryptomines also threaten the energy grid,” she stated.

Espionage and Energy Threats

Paul Rosen, the Assistant Secretary of the Treasury for Investment Security, echoed Warren’s concerns. He noted the “generalized concern” about “sophisticated equipment” near sensitive facilities potentially being used for espionage.

To counter these threats, Senator Warren emphasized the need for legislative action to safeguard national security. She argued that cryptomines could be used by adversaries to spy on military bases, disrupt the power grid, or covertly move money in and out of the country.

Last year, the Treasury Department sought additional tools from Congress to prevent countries like China, Iran, and Russia from using crypto to evade sanctions and launder money. Warren stressed the urgency of passing these laws, stating, “It is time for us to pass laws, laws that Treasury needs.”

Warren, a longtime critic of cryptocurrency, has previously warned about the dangers posed by the crypto sector. In June of last year, she pointed out that “rogue nations,” oligarchs, and drug dealers were using cryptocurrency to fund their illicit activities. In 2021, she described the crypto industry as a significant threat to the financial system.

Senator Warren has consistently raised alarms about the risks associated with cryptocurrency. Her recent statements at the Senate hearing underscore her ongoing concerns about the national security implications of foreign-operated cryptomines. As the debate over digital asset regulation continues, Warren’s call for stronger legislative measures reflects a growing urgency to address these emerging threats.