U.S. Senator Warns About Foreign Espionage Risks from Crypto Mining

Senator Elizabeth Warren has raised concerns about foreign adversaries potentially exploiting digital asset mining operations for espionage.

During a recent Senate Committee on Banking, Housing, and Urban Affairs hearing, Warren highlighted the risk of cryptomining facilities being used to gather intelligence on U.S. military activities.

Warren warned that such foreign-operated mines might pose significant national security threats. She specifically pointed out the potential for these operations to access sensitive military information and jeopardize the energy grid.

Her remarks align with comments from Paul Rosen, the Assistant Secretary of the Treasury for Investment Security, who expressed worries about “sophisticated equipment” near critical infrastructure possibly being used for spying.

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To address these concerns, Warren urged Congress to enact legislation aimed at enhancing national security and countering the covert use of crypto and mining facilities by foreign entities.

Warren’s call for action follows previous requests from the Treasury Department for additional measures to prevent countries like China, Iran, and Russia from leveraging cryptocurrencies to evade sanctions and launder money.

Historically, Senator Warren has been critical of the crypto industry, previously arguing that cryptocurrencies facilitate illicit activities and undermine the financial system.

Alexander Stefanov