US Senators Elizabeth Warren and Bill Cassidy have taken a bipartisan stand against the use of cryptocurrency in the illegal trade of child sexual abuse material (CSAM). In a letter addressed to Attorney General Merrick Garland and Secretary of Homeland Security Alejandro Mayorkas, the senators highlighted the pseudonymity of cryptocurrencies as a critical factor enabling the movement of payments for CSAM into the digital realm.
Chainalysis, a leading blockchain analytics firm, reported in January 2024 that virtual currency has become the preferred method among buyers and sellers of commercial CSAM content. This is further supported by the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) analysis in February, which revealed a significant increase in the use of virtual currencies by perpetrators aiming to avoid detection.
Warren and Cassidy emphasized the urgent need for legislative and administrative actions to address the issue. Financial institutions have filed thousands of suspicious activity reports linked to CSAM, with over 1,800 unique Bitcoin wallet addresses associated with these offenses. The senators stressed the importance of strong anti-money laundering measures and effective law enforcement strategies to combat such heinous crimes.
The Internet Watch Foundation (IWF) has reported a doubling in the number of websites accepting crypto for CSAM annually since 2018. This alarming trend underscores the need for immediate action to curb the use of cryptocurrency in facilitating these illicit transactions.
Warren, known for her advocacy for stringent crypto regulations, has been actively promoting legislative measures to tighten anti-money laundering rules targeting the crypto sector. Senators Warren and Cassidy are pushing for a combined effort between Congress and the Administration to equip both bodies with the necessary tools to effectively combat the issue.
The letter from Senators Warren and Cassidy marks a critical step towards legislative action aimed at closing gaps in the current financial regulatory framework to address and mitigate the risks associated with digital assets in such harmful trades. It is imperative that swift and decisive actions are taken to protect vulnerable individuals and eradicate the use of cryptocurrency in the trade of CSAM.