US Senators Address Crypto Use in Child Abuse Trade

U.S. Senators Elizabeth Warren and Bill Cassidy are taking action to combat the use of cryptocurrencies in the trade of child sexual abuse material (CSAM).

The senators are pressing federal agencies, including the Department of Justice (DOJ) and Department of Homeland Security (DHS), to ensure they have the necessary tools to track down crypto transactions related to the sale of CSAM.

Their inquiry follows a Chainalysis study from January 2024, which highlighted an uptick in the use of cryptocurrencies like Monero in the illicit trade of CSAM. Sellers are utilizing mixing services and privacy coins to launder profits and evade detection.

In a letter to Attorney General Merrick Garland and Secretary of Homeland Security Alejandro Mayorkas, the senators seek information on the agencies’ current capabilities in identifying and prosecuting these crimes. They emphasize the challenges existing Anti-Money Laundering (AML) rules and law enforcement methods face in effectively tackling these offenses.

The letter includes six questions aimed at assessing the agencies’ understanding of the cryptocurrency-CSAM nexus and identifying the need for new tools to combat such activities. Responses are requested by May 10.

The DOJ’s recent actions against cryptocurrency exchange KuCoin and its founders underscore the seriousness of the issue. The exchange and its founders were charged with operating an unlicensed money transmitting business and violating the Bank Secrecy Act due to their failure to implement basic AML policies, which enabled KuCoin to facilitate illicit money laundering.

The Justice Department alleges that KuCoin processed billions of dollars in suspicious and criminal funds, highlighting the urgency of addressing crypto-related illicit activities to safeguard vulnerable individuals.