WASHINGTON, DC Tuesday, February 20, 2024 –The US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) released a report on February 13, 2024, highlighting a significant increase in the use of cryptocurrency, particularly Bitcoin, for Online Child Sexual Exploitation (OCSE) and human trafficking. 1
This report, based on Bank Secrecy Act (BSA) reporting data from 2020 to 2021, emphasizes the growing role of Convertible Virtual Currencies (CVCs) in these heinous crimes.
The number of BSA reports involving CVCs linked to OCSE and human trafficking surged from 336 in 2020 to 1,975 in 2021, representing a nearly sixfold increase.
In an overwhelming majority (95%) of such reports, financial institutions explicitly mentioned Child Sexual Abuse Material (CSAM) or human trafficking involving CSAM.
While Bitcoin was identified as the primary CVC used in reported criminal activity, the report acknowledges that other cryptocurrencies are likely involved as well.
FinCEN identified four major typologies: darknet marketplaces distributing CSAM, peer-to-peer exchanges, CVC mixers facilitating anonymity, and CVC kiosks used for illicit transactions.
The FinCEN report also underscores the alarming trend of criminals exploiting CVCs for OCSE and human trafficking.
The report highlights the importance of reporting suspicious activity to authorities.
Individuals suspecting OCSE or human trafficking are urged to contact law enforcement immediately, while financial institutions are encouraged to file detailed BSA reports to aid investigations.
- FinCEN: https://www.fincen.gov/news/news-releases/fincen-sees-increase-bsa-reporting-involving-use-convertible-virtual-currency[↩]
