Senators Warren and Cassidy Demand Action on Cryptocurrency Use

U.S. Senators Elizabeth Warren and Bill Cassidy have expressed their concerns to the U.S. Department of Justice (DOJ) and Department of Homeland Security (DHS) about the role of cryptocurrencies in the trafficking of child sexual abuse material (CSAM).

They pointed out that the anonymity features of cryptocurrencies make it easier to pay for CSAM quickly.

A January 2024 study by blockchain firm Chainalysis shows increased CSAM transactions via cryptocurrencies. According to the report, digital currencies are now the preferred payment method for CSAM.

The Financial Crimes Enforcement Network (FinCEN) also observed a trend of criminals using these currencies to stay hidden. FinCEN identified over 1,800 Bitcoin wallets linked to these illegal activities, with CSAM involved in nearly all cases.

The involvement of Homeland Security in charging individuals, including a South Korean national who managed a dark web site using Bitcoin for CSAM, highlights the ongoing battle against this illicit trade.

Although the Chainalysis report notes a decrease in the overall CSAM market size, it warns that traffickers are becoming more cunning and harder to track. Bitcoin is still the most common currency for these transactions.

Senators Warren and Cassidy are asking the DOJ and DHS for a detailed assessment of how cryptocurrencies facilitate CSAM and what steps are being taken to combat this.

They are particularly interested in actions against using privacy coins and methods that obscure transactions.

These inquiries align with Senator Warren’s previous legislative efforts, notably her Digital Asset Anti-Money Laundering Act, to integrate digital transactions into strict anti-money laundering regulations.

These steps by the senators underscore their commitment to eradicating CSAM and ensuring accountability for those involved.