US senators Bill Cassidy and Elizabeth Warren are urging the Department of Justice and Department of Homeland Security to enhance their efforts in combating the use of cryptocurrency for purchasing child sexual abuse material (CSAM) online. They argue that this issue has been escalating and that the anonymity provided by crypto transactions makes it easier for individuals involved in CSAM trading to avoid detection by law enforcement.

In a letter addressed to Attorney General Merrick Garland and Secretary of Homeland Security Alejandro Mayorkas, the senators expressed their concerns about the increasing use of cryptocurrency in the illicit CSAM trade. They cited information from the US Treasury’s Financial Crime Enforcement Network, research from Chainalysis, a company that tracks crypto transactions, and the Internet Watch Foundation, a charity dedicated to combating CSAM.

The letter revealed that while financial institutions had identified 1,800 bitcoin wallets suspected of facilitating transactions related to child sexual exploitation or human trafficking between 2020 and 2022, there was a decrease in the crypto-based CSAM market in 2023. However, sellers have adapted their methods to avoid detection for longer periods.

Warren and Cassidy highlighted that individuals engaged in online CSAM trading use various tactics to conceal their activities, such as employing crypto mixing services and ATMs to obscure the source of funds used in CSAM transactions and to launder their profits. They emphasized the prevalence of cryptocurrency as the primary payment method for perpetrators of child sexual abuse and exploitation.

In a proactive stance, Warren and Cassidy have called on the DOJ and DHS to share their research findings on the extent of cryptocurrency’s involvement in the CSAM problem and provide insights into the specific challenges associated with prosecuting this type of crime. The senators have set a deadline of May 10 for the agencies to respond to their inquiries.

Despite facing criticism from crypto communities for her strong stance against cryptocurrency and its links to illegal activities, Warren remains resolute. She has been under scrutiny, especially for the anti-money laundering legislation she proposed in July 2023, which the Chamber of Digital Commerce believes could negatively impact US startups and investors in the crypto asset class. Warren argues that strict regulations are essential for the crypto industry to prevent exploitation by criminal entities, including those involved in CSAM distribution.