Countries throughout the globe impose sanctions on Russia in response to its invasion of Ukraine, U.S. Senator Elizabeth Warren is concerned that cryptocurrencies might provide a means for Russia to avoid sanctions. On Monday, Massachusetts Senator Elizabeth Warren stated on Twitter that cryptocurrencies have the potential to weaken Russian sanctions, allowing Putin and his cronies to avoid economic consequences. She added that US financial regulators should take this issue seriously and improve their inspection of digital assets.
Elizabeth Warren: Bitcoin undermines sanctions#Bitcoin: Yes pic.twitter.com/iYyod2intF
— Bitcoin Magazine (@BitcoinMagazine) March 1, 2022
However, Senator Warren’s tweet has drawn harsh criticism from the cryptocurrency community. Some users dubbed her stupid, while others accused her of lying. One user tweeted that, so what you’re saying is that stateless, permissionless, decentralised, and censorship-resistant money is out of your control and must be stopped?
Texas Senator Ted Cruz has stated that Senator Warren dislikes bitcoin and cryptocurrencies because she lacks control over them. Senator Warren’s tweet contains a link to a New York Times piece headlined “Russia Could Use Cryptocurrency to Blunt the Force of U.S. Sanctions”. Jerry, executive director of the Washington, D.C.-based think group Coin Centre, pointed out that there are certain flaws in the New York Times story referenced by Senator Warren.
Cryptocurrencies risk undermining sanctions against Russia, allowing Putin and his cronies to evade economic pain.
U.S. financial regulators need to take this threat seriously and increase their scrutiny of digital assets. https://t.co/4lCUNcUC29
— Elizabeth Warren (@SenWarren) February 28, 2022
Brito emphasised that the report highlights “new techniques created in Russia” that might aid in concealing the origin of bitcoin transactions. However, it does not describe what the tools are or provide any references. It’s foolish of her to believe that ransomware can compensate for lost revenue due to sanctions; it’s to misunderstand the scope of the embargo being enforced, he added.