A few years ago, Bitcoin (BTC) became a popular means of conducting illegal transactions to support a thriving global business in people smuggling and exploitation, according to the Verge. Analysis released Tuesday By the US Department of the Treasury.
Based on government filings by financial companies in 2020 and 2021, that period saw a rise in the use of cryptocurrencies — the most popular being Bitcoin — in crimes that included human trafficking and child sexual exploitation, according to a trend report from the Treasury Department. Crime Enforcement Network (FinCEN). In those two years, the analysis found that there were 2,311 reported uses of cryptocurrencies in such crimes, with a value of more than $412 million.
“Victims of these crimes are placed in forced labour, slavery, involuntary servitude and/or forced labor and/or are forced to engage in commercial sex acts,” the report said. The use of cryptocurrencies has been on a sharp rise, with the number of reports reaching 1,975 in 2021, surpassing 336 reports in 2020.
“Human traffickers and perpetrators of related crimes despicably exploit adults and children for financial gain.” said FinCEN Director Andrea Jacki, in the current situation. Financial companies that monitor these cases “ultimately help law enforcement protect and save innocent lives.”
But the most recent data examined was from December 2021, more than two years ago. That period preceded the crypto winter and subsequent recovery in recent months.
The majority of cases assessed in this report involved the exchange of cryptocurrencies for “child sexual abuse material” – typically “CSAM” involving explicit images and videos of children – generally via darknet markets, with cryptocurrency kiosks being used (known as CSAM). Financial Crimes Enforcement (FinCEN) uses Bitcoin ATMs or with transactions made through mixers.
The use of cryptocurrencies and popular transaction methods has seen some changes since that period, and cryptocurrency data company Chainalysis noted that “the volume and intensity of CSAM activity peaked in 2021,” according to Review published last month.
The FinCEN report noted that some of the increase over the biennium could have been driven by “increased awareness and vigilance” from financial institutions familiar with the criminal use of cryptocurrencies.
