Two US Senators, Elizabeth Warren and Bill Cassidy, have come together in a bipartisan effort to address the issue of cryptocurrencies being used 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 key factor enabling the movement of payments for CSAM into the digital realm. This has raised concerns about the growing prevalence of virtual currency as the preferred method of payment for such illicit activities.
Reports from Chainalysis and the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) have confirmed the significant issue of crypto-based sales of CSAM. According to these reports, virtual currency has become the dominant method among buyers and sellers of commercial CSAM content. The use of virtual currencies by perpetrators aiming to avoid detection has also been on the rise, as highlighted in the FinCEN analysis. Moreover, financial institutions have been reporting thousands of suspicious activity reports linked to CSAM, with over 1,800 unique Bitcoin wallet addresses associated with these offenses.
The urgent need for legislative and administrative actions to address this issue has been emphasized by Senators Warren and Cassidy. The rise in the number of websites accepting crypto for CSAM, as reported by the Internet Watch Foundation (IWF), further underscores the pressing need to tackle this problem. Warren, known for her advocacy for stringent crypto regulations, has been actively pushing for legislative measures and tighter anti-money laundering rules specifically targeting the crypto sector. The senators are calling for a combined effort between Congress and the Administration to equip both bodies with the necessary tools to effectively combat the issue.
The letter sent by 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. Strong anti-money laundering measures and effective law enforcement strategies are seen as essential in combating crimes involving the use of cryptocurrencies in the illegal trade of CSAM. It is evident that immediate action needs to be taken to curb the misuse of crypto in facilitating these heinous activities.