Senator Warren: Crypto Is The “Payment Of Choice” For Child Sexual Abuse, Urges DOJ Action

In a joint effort to fight the illicit trafficking of kid sexual abuse materials (CSAM), US senators Elizabeth Warren and Invoice Cassidy have written a letter to the US Division of Justice (DOJ) and Division of Homeland Safety (DHS) expressing concern concerning the alleged use of crypto to facilitate these actions. 

Alleged Hyperlink Between Crypto And Youngster Sexual Abuse

Within the letter, the senators spotlight the “pseudonymity” offered by cryptocurrencies, which they are saying has enabled the speedy motion of funds for CSAM into the crypto world.

It was additionally acknowledged that each Warren and Cassidy are dedicated to making sure that Congress and the Administration have the instruments needed to finish CSAM and maintain these chargeable for its distribution accountable.

The legislators’ considerations are primarily based on a January 2024 report from blockchain analytics agency Chainalysis, which identifies cryptocurrency-based gross sales of CSAM as “a rising drawback.” 

The report reveals that digital forex has turn out to be the popular cost methodology for patrons and sellers of business youngster sexual abuse content material. Moreover, a Monetary Development Evaluation by the Division of the Treasury’s Monetary Crimes Enforcement Community (FinCEN) signifies an rising pattern of perpetrators utilizing convertible digital currencies to evade detection.

The senators cite troubling findings from FinCEN, which found 1000’s of suspicious exercise experiences associated to on-line youngster sexual exploitation and human trafficking offenses involving Bitcoin. 

These experiences allegedly recognized over 1,800 distinctive Bitcoin pockets addresses related to suspected offenses, with CSAM being particularly talked about in 95% of the circumstances.

Senators Demand Accountability

The senators additional identified that Homeland Safety investigators performed a crucial position within the indictment of a South Korean nationwide and quite a few customers in america for working a darkish internet pornography web site funded by Bitcoin.

Nevertheless, legislators be aware that using cryptocurrency in CSAM’s illicit commerce seems to be rising.

The Chainalysis evaluation additional reveals that whereas the scale of the crypto-based CSAM market has decreased, sellers have turn out to be extra “refined and resilient” to detection and takedowns. In accordance with the report, Bitcoin stays essentially the most broadly used cryptocurrency for buying CSAM.

To deal with these challenges, Senators Warren and Cassidy requested the DOJ and DHS a sequence of questions, searching for clarification on their present evaluation of the alleged cryptocurrency’s position in facilitating CSAM, the sophistication of CSAM sellers, and the “distinctive challenges” posed by way of crypto as cost in these crimes. 

Additionally they inquire concerning the businesses’ steps to fight CSAM sellers’ use of cryptocurrency, privateness cash, and obscurification strategies.

Senator Warren’s earlier efforts embody introducing the Digital Asset Anti-Cash Laundering Act, a bipartisan invoice to counter unlawful actions and misuse of digital currencies. 

The invoice seeks to convey the digital asset ecosystem into “larger compliance” with anti-money laundering and counter-terrorism financing frameworks.

Featured picture from Shutterstock, chart from TradingView.com