US senators have targeted the use of cryptocurrency in the child abuse business
Actions are being taken against individuals who buy and sell child sexual abuse (CSAM) in the United States.
US Senators Elizabeth Warren and Bill Cassidy want to ensure that federal agencies are fully prepared to monitor crypto transactions linked to the sale of child abuse content.
In order to eliminate CSAM, the Department of Justice (DOJ) and Department of Homeland Security (DHS) are requested to describe their current technical capabilities.
The senators cited a Chinalysis study from January 2024 that pointed to an increase in the use of cryptocurrency in CSAM's illegal trade. In the study.
Chainalysis found that sellers of child abuse materials are using “hybrid” and “privacy coins” like Monero (XMR) to launder their profits and evade law enforcement.
Writing to Attorney General Merrick Garland and Homeland Security Secretary Alejandro Mayorkas, the U.S. senators questioned the DOJ and DHS' current capacity to identify and prosecute these crimes.
“Existing anti-money laundering (AML) laws and law enforcement mechanisms face challenges in effectively detecting and preventing these crimes.
The letter contained six questions, three of which were aimed at measuring the independent findings of federal agencies on cryptocurrency's relationship with CSAM. The rest was to identify the need for new tools to identify and prosecute sellers and buyers.
The senators had until May 10 to respond to the questions.
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The DOJ's current technical ability to investigate crypto transactions has led to the indictment of cryptocurrency exchange KuCoin and its two founders.
On March 26, the DOJ charged KuCoin and its two founders with “conspiring to conduct an unauthorized money transmission business” and violating the Bank Secrecy Act, or BSA.
“The defendants failed to implement basic anti-money laundering policies, allowing KuCoin to operate in the shadow of financial markets and become a safe haven for money laundering.”
According to the Department of Justice, KuCoin received more than $5 billion and sent more than $4 billion in “suspicious and criminal funds.”
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