In a joint effort to combat illicit trafficking in child pornography (CSAM), U.S. senators Elizabeth Warren and Bill Cassidy wrote a letter to the U.S. Department of Justice (DOJ) and the Department of Homeland Security (DHS) expressing concerns regarding the alleged use of cryptography to facilitate these activities.
Alleged link between cryptography and child sexual abuse
In the letterThe senators point to the “pseudonym” provided by cryptocurrencies, which they say has enabled the rapid movement of payments for CSAM in the crypto world.
It was also stated that Warren and Cassidy are committed to ensuring that Congress and the administration have the tools necessary to end CSAM and hold those responsible for its distribution accountable.
The lawmakers’ concerns are based on a January 2024 report from blockchain analytics firm Chainalysis, which identifies cryptocurrency-based CSAM sales as “a growing problem.”
The report reveals that virtual currency has become the preferred payment method for buyers and sellers of commercial content on child sexual abuse. Additionally, an analysis of financial trends by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) indicates a growing trend of perpetrators using convertible virtual currencies to evade detection.
The senators cite troubling findings from FinCEN, which uncovered thousands of suspicious activity reports linked to online child sexual exploitation and human trafficking offenses involving Bitcoin.
These reports are said to have identified more than 1,800 Bitcoin Wallet addresses associated with suspected offenses, the CSAM being specifically mentioned in 95% of cases.
Senators demand accountability
The senators further noted that Homeland Security investigators played a crucial role in indicting a South Korean national and numerous users in the United States for operating a Dark web porn site funded by Bitcoin.
However, lawmakers note that the use of cryptocurrency in illicit CSAM trading appears to be increasing.
Chainalysis’ review further reveals that although the size of the crypto-based CSAM market has decreased, sellers have become more “sophisticated and resilient” to detection and takedowns. According to the report, Bitcoin remains the most used cryptocurrency to purchase CSAM.
To address these challenges, Senators Warren and Cassidy posed a series of questions to the DOJ and DHS, seeking clarification on their current assessment of the alleged role of cryptocurrency in facilitating CSAM, the sophistication of CSAM sellers and “unique challenges” posed by use. crypto like payment in these crimes.
They also inquire about what agencies are doing to combat CSAM sellers’ use of cryptocurrency, privacy coins, and obfuscation methods.
Senator Warren’s previous efforts include introducing the Anti-Money Laundering Law on Digital Assetsa bipartisan bill aimed at combating illegal activities and misuse of digital currencies.
The bill aims to make the digital asset ecosystem “more compliant” with anti-money laundering and anti-terrorism financing frameworks.
Featured image from Shutterstock, chart from TradingView.com
