U.S. senators target cryptocurrency in CSAM crackdown
Following the increase of cryptocurrencies being used in the trade of child sexual abuse material (CSAM), U.S. Senators Elizabeth Warren and Bill Cassidy are heading the way of empowering federal agencies with the tools they need to expose and stop these illegal transactions. A study from Chainalysis dated January 2024 revealed a sharp hike in the use of cryptocurrency mixers and privacy coins like Monero (MC) by pedophiles to launder their CSAM sale proceeds and evade legal authorities.
U.S. senators demand answers on cryptocurrency-CSAM links
The U.S. senators have addressed the DOJ and the DHS, asking them to share their current technical abilities on criminals being prosecuted for CSAM transactions using cryptocurrency. Attorney General Merrick Garland and Secretary of Homeland Security Alejandro Mayorkas received a letter with 6 questions addressed to them. These questions required their agencies to conduct independent investigations on the cryptocurrency-CSAM connection and search for better tools to fight these activities.
DOJ charges KuCoin in cryptocurrency abuse case
By showcasing the magnitude of concern, the recent happenings emphasize the DOJ’s active attempt to catch up with the crime. In fact, by charging the cryptocurrency exchange KuCoin and two of its founders, one realizes the importance of regulatory authority. Involving KuCoin and its executives, charges for operating an unlicensed money-transmitting business as well as a Bank Secrecy Act violation that resulted in more than $5 billion in criminal and suspicious funds being processed.
Identifying the growing rise in the misuse of cryptocurrencies in online CSAM, the bipartisan ratio of Senator Elizabeth Warren and Bill Cassidy has clearly highlighted the critical matter of policy that calls for the existence of proper rules and regulations and the ability of federal agencies to be more technical. The investigation continues as the stakeholders are alert and establish the necessity of ensuring that no one is taken advantage of in the process. Besides, the financial system’s interests are conserved.
