Senators Warren and Cassidy Lead Efforts to Combat Use of Cryptocurrency in Child Sexual Abuse Material Transactions
The crackdown on the use of cryptocurrencies in the buying and selling of child sexual abuse material (CSAM) is intensifying in the United States, with Senators Elizabeth Warren and Bill Cassidy leading the charge. The senators have called on federal agencies to step up their efforts in combating crypto payments in the distribution of CSAM online.
In a letter to Attorney General Merrick Garland and Secretary of Homeland Security Alejandro Mayorkas, Warren and Cassidy expressed concerns about the anonymity provided by cryptocurrency transactions, which allows perpetrators to evade law enforcement. They cited data showing a rise in the use of cryptocurrency in illicit CSAM transactions, with financial institutions identifying 1,800 Bitcoin wallets suspected of engaging in such activities between 2020 and 2022.
The senators highlighted the methods used by individuals involved in CSAM trading to conceal their activities, including the use of crypto mixing services and ATMs to obscure the origin of funds. They also pointed out the increasing use of instant exchangers that allow for Monero conversion, making it harder for law enforcement to track transactions.
Warren, known for her vocal criticisms of cryptocurrency, has reiterated the need for stringent regulations to prevent criminal misuse of cryptocurrencies, including in cases related to CSAM. The recent indictment of cryptocurrency exchange KuCoin and its founders by the DOJ for operating an unlicensed money-transmitting business and violating the Bank Secrecy Act demonstrates the government’s commitment to cracking down on illicit activities in the crypto space.
The senators have requested the DOJ and DHS to disclose their research findings on the extent of cryptocurrency’s role in the CSAM problem by May 10, signaling a concerted effort to combat the use of cryptocurrencies in the distribution of child sexual abuse material.
