News
Warren calls on Justice Department and NHS to crack down on cryptocurrency payments for child pornography
American senators Elizabeth Warren (D-Mass.) and Bill Cassidy (R-La.) urge U.S. authorities to crack down on the use of cryptocurrencies in the illegal trade of child pornography (CSAM).
Lawmakers raised the alarm at a bipartisan meeting on April 26 letter addressed to Attorney General Merrick Garland and Homeland Security Secretary Alejandro Mayorkas.
Cryptocurrency payments for CSAM
Senators identified cryptocurrency pseudonymity as a critical factor facilitating the movement of payments for CSAM into the digital realm. They noted that cryptocurrencies have become the preferred payment method for such illicit activities, underscoring the urgent need for legislative and administrative actions to address this issue.
A January 2024 report from Chainalysis, a leading blockchain analytics firm, confirms the growing problem of cryptocurrency-based CSAM sales. The report identified virtual currency as the dominant method among buyers and sellers of CSAM commercial content.
A February analysis conducted by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) further supports the findings. The FinCEN report revealed an increase in the use of virtual currencies by criminals aiming to avoid detection.
The analysis also revealed that financial institutions had submitted thousands of reports of suspicious activity linked to child pornography material, identifying over 1,800 unique reports Bitcoin wallet addresses associated with these crimes.
Stricter anti-money laundering rules
The senators wrote that such developments highlight the need for strong anti-money laundering measures and effective law enforcement strategies to combat such crimes.
The Internet Watch Foundation (IWF) has also reported a significant increase in the number of websites accepting cryptocurrencies for CSAM, doubling every year since 2018.
Warren, a supporter of stringent cryptographic regulationshas been active in promoting various legislative measures and pushing for stronger anti-money laundering regulations aimed specifically at the cryptocurrency sector.
Senators Warren and Cassidy support a joint effort between Congress and the Administration. The goal is to equip both bodies with the tools necessary to effectively combat the problem.
The letter marks a critical step towards legislative action to address gaps in the current financial regulatory framework to address and mitigate the risks associated with digital assets in such malicious transactions.