Foreign Crypto Miners in the US Could Be Spying on US Military – Elizabeth Warren

US Senator Elizabeth Warren has spoken out against cryptocurrency miners operating in the country, warning that they could be used to spy on military operations. Known for her public anti-crypto stance, Senator Warren said mining facilities owned by non-US entities threaten national security. The Massachusetts Senator is a vocal critic of the crypto sector and believes it is easily used for crime. 

Crypto has impacted several industries, including the finance sector, especially with the introduction of DeFi (decentralized finance). The inherent decentralization has widespread benefits because most transactions are peer-to-peer. This reduces the cost of transactions and allows platforms to offer more services to customers across the board. For instance, the iGaming industry enjoys the integration of cryptocurrencies, which improves security and expands game selection. As experts at Crypto Casino LTD tell us, users can enjoy exciting bonuses, provably fair gaming, cheap deposits and withdrawals, and a low barrier of entry since there are no challenging limitations to cryptocurrency transactions. Despite the pros of the crypto sector, Warren has maintained a dissenting opinion.

At a recent hearing of the Senate Committee on Banking, Housing, and Urban Affairs, Warren noted environmental risks posed by crypto mining facilities, calling them a “disaster for the environment. She added:

“These mines are actually warehouses stuffed with computers that process crypto transactions and produce new crypto tokens. They’re loud, they’re hot, and they suck up a ton of electricity, which can crash the power grid.” 

Warren also highlighted the security risks of foreign crypto miners in the US. She said a third of all crypto mining facilities currently operating in the US are owned by Chinese citizens or other entities connected to the Chinese government. She added that these mines use enough energy to power 1.5 million homes and can threaten the energy grid and perpetuate targeted blackouts and cyber attacks.

The Massachusetts Senator also spoke about the possibility of using crypto mines for espionage. She cited an investigation into MineOne, a Chinese-owned mine located one mile from a Wyoming Air Force base containing intercontinental ballistic missiles. In May, the White House published an order signed by President Joe Biden, forcing MineOne to divest. The order specified that acquiring the property near the Francis E. Warren Air Force Base poses risks that threaten national security. It also specifies that the “specialized and foreign-sourced equipment” could be used for surveillance and espionage. The Presidency gave MineOne 90 days to remove all equipment and 120 days to complete divestment by selling or transferring all rights and interests.

In addition to security risks, Senator Warren spoke about financial threats. According to her, foreign nationals in the US are secretly buying mines in the US by paying in crypto. The Senator says the purchases circumvent the traditional banking system and violate anti-money laundering regulations using crypto. 

Recently, Warren lost the support of Republican Senator Roger Marshall, who co-sponsored a controversial anti-crypto bill introduced in 2022. The Digital Asset Anti-Money Laundering Act (DAAMLA) aims to bring crypto services under existing money laundering and terrorist financing laws. This would mean that all crypto-asset firms, including decentralized wallet providers, exchanges, and crypto gambling platforms, would be subject to specific regulations in the Bank Secrecy Act. According to an official Congress page, Marshall withdrew support on the 24th. The Senator has not officially addressed his withdrawal.