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” supplied 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 obligatory to finish CSAM and maintain these liable for its distribution accountable.

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

The report reveals that virtual currency has change into the popular cost technique for patrons and sellers of business baby sexual abuse content material. Moreover, a Monetary Development Evaluation by the Division of the Treasury’s Monetary Crimes Enforcement Community (FinCEN) signifies an growing development 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 baby sexual exploitation and human trafficking offenses involving Bitcoin.

These experiences allegedly recognized over 1,800 distinctive Bitcoin wallet 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 important function within the indictment of a South Korean nationwide and quite a few customers in the USA for working a dark web pornography website funded by Bitcoin.

Nevertheless, legislators word that the usage of cryptocurrency in CSAM’s illicit commerce seems to be growing.

The Chainalysis assessment additional reveals that whereas the dimensions of the crypto-based CSAM market has decreased, sellers have change into extra “sophisticated and resilient” to detection and takedowns. In keeping with the report, Bitcoin stays probably the most extensively used cryptocurrency for buying CSAM.

To handle these challenges, Senators Warren and Cassidy requested the DOJ and DHS a collection of questions, searching for clarification on their present evaluation of the alleged cryptocurrency’s function in facilitating CSAM, the sophistication of CSAM sellers, and the “unique challenges” posed by way of crypto as payment 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 embrace introducing the Digital Asset Anti-Money Laundering Act, a bipartisan invoice to counter unlawful actions and misuse of digital currencies.

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