U.S. Sen. Elizabeth Warren (D-Mass.) is attacking cryptocurrencies again, this time linking the digital asset market to child sexual abuse material (CSAM).
In a bipartisan open letter to the U.S. Department of Justice and Homeland Security, co-signed by Louisiana Sen. Bill Cassidy, Warren called cryptocurrencies “the payment method of choice for child abuse material.” called.
“We express our concerns about the use of cryptocurrencies in the illegal trade in child sexual abuse materials and seek information on the tools the Department of Justice and Homeland Security need to end this illegal trade. We are writing this letter to ,” the senators wrote. .
Warren and Cassidy said in their letter that virtual currencies and the anonymity they provide facilitate the trade in images and videos depicting child sexual abuse, according to the International Center for Missing and Exploited Children in 2021. pointed out the 2016 report.
The letter also cited a February report from the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) that identified Bitcoin as a “convertible virtual currency” (CVC) of choice for child exploitation and human trafficking in 2020-2021. also mentioned.
Of the 2,311 reports received, “2,157 reports specifically mentioned Bitcoin as the primary CVC used for the purpose.” [Online Child Sexual Exploitation]- and human trafficking-related activities,” FinCEN reported. The remaining filings did not specify a currency. “From this dataset, FinCEN identified over 1,800 unique Bitcoin wallet addresses of his associated with his OCSE and alleged human trafficking crimes.”
The senators also cited a recent Cryptocrime Report by blockchain analysis firm Chainalysis, noting that privacy coins like Monero are being adopted by CSAM vendors.
“Although many CSAM vendors have adopted Monero in recent years, the most widely used cryptocurrency for purchasing CSAM is Bitcoin,” Chainaracy writes. “The data suggests that Monero’s role is pervasive in efforts to launder CSAM vendors’ on-chain revenue, rather than concealing the purchases themselves.”
Chainaylsis acknowledged that it is difficult to directly verify Monero's role on-chain using standard blockchain analysis techniques, but that the role of Monero as a proxy for Monero-friendly instant exchange by CSAM vendors is difficult to verify directly on-chain using standard blockchain analysis techniques. Usage may be reported.
Sen. Warren's office did not immediately respond to Sen. Warren's request for comment. Decryption.
Warren and Cassidy set a May 10 deadline for the Department of Justice and Homeland Security to respond, ensuring Congress and the Biden administration do their part to address challenges related to CSAM and cryptocurrencies. Said to be helpful.
“Existing anti-money laundering regulations and law enforcement methods face challenges in effectively detecting and preventing these crimes,” the letter said. “We are committed to ensuring that Congress and the Administration have the tools they need to end CSAM and punish those who sell this material.”
In addition to asking government agencies to outline their most pressing needs, the letter also asks government agencies to provide an overview of their current assessment of the role of cryptocurrencies in facilitating CSAM, and how their use will identify and prosecute these crimes. We are also asking whether and what kinds of problems the initiatives pose. Steps they are currently taking to address them.
In an ongoing effort to root out cryptocurrency abuse, Warren introduced the Digital Asset Money Laundering Prevention Act in December 2022, creating a virtual regulatory framework that applies to traditional financial institutions. It also expanded into currency companies. Digital asset wallet providers, miners, and validators must comply with know-your-customer (KYC) and anti-money laundering (AML) requirements.
Last summer, Warren sounded the alarm about the use of cryptocurrencies in fentanyl transactions and called for stricter regulations. She has also been a vocal supporter of the U.S. Securities and Exchange Commission's approach to cryptocurrencies, which she argued was the wrong move to approve a Bitcoin ETF in January.
“If the SEC intends to push cryptocurrencies deeper into the financial system, it is more urgent than ever that cryptocurrencies comply with basic anti-money laundering rules,” Warren said on Twitter.
Edited by Ryan Ozawa.
