The United States is cracking down on individuals who use cryptocurrencies to buy and sell child sexual abuse material (CSAM). U.S. Senators Elizabeth Warren and Bill Cassidy are determined to ensure that federal agencies have the necessary tools to track crypto transactions related to the sale of child abuse content. In order to put an end to CSAM, they have asked the Department of Justice (DOJ) and the Department of Homeland Security (DHS) to disclose their current technical capabilities.
The senators referenced a Chainalysis study from January 2024, which revealed an increase in the use of cryptocurrency in the illicit trade of CSAM. According to Chainalysis, sellers of child abuse materials are using “mixers” and “privacy coins” like Monero (XMR) to launder their profits and avoid detection by law enforcement. The study also found that CSAM vendors are increasingly using instant exchangers that allow for Monero conversion.
In a letter addressed to Attorney General Merrick Garland and Secretary of Homeland Security Alejandro Mayorkas, Warren and Cassidy posed six questions. Three of these questions were aimed at determining the federal agencies’ independent findings on the connection between cryptocurrency and CSAM, while the remaining questions sought to identify the need for new tools to prosecute sellers and buyers. The senators have requested a response to these questions by May 10.
The DOJ’s current technical capacity to examine crypto transactions has already resulted in the indictment of cryptocurrency exchange KuCoin and its two founders. On March 26, the DOJ charged KuCoin and its founders with operating an unlicensed money transmitting business and violating the Bank Secrecy Act. According to the Justice Department, KuCoin received over $5 billion and sent more than $4 billion of suspicious and criminal funds.
Overall, this crackdown on individuals using cryptocurrencies for CSAM transactions highlights the determination of U.S. authorities to combat this heinous crime. By ensuring that federal agencies have the necessary tools and capabilities, Warren and Cassidy aim to put an end to the use of cryptocurrencies in the trade of child abuse material.