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In a current evaluation launched by the US Department of the Treasury, it was revealed that the usage of bitcoin in unlawful actions, notably human trafficking and the sexual exploitation of kids, has seen a big surge in recent times. The report, based mostly on monetary companies’ authorities filings from 2020 and 2021, uncovered a staggering 2,311 reported circumstances of crypto being used in such crimes, amounting to over $412 million.

Bitcoin ATMs Facilitate Illicit Trafficking Methods

The victims of those crimes, as acknowledged within the report, are subjected to compelled labor, slavery, involuntary servitude, and compelled engagement in industrial intercourse acts. The use of cryptocurrency in these illicit actions has been on a pointy rise, with 1,975 reported circumstances in 2021, surpassing the 336 circumstances reported in 2020.

“Human traffickers and perpetrators of related crimes despicably exploit adults and children for financial gain,” expressed FinCEN Director Andrea Gacki in response to the findings. Gacki emphasised the essential function of economic establishments in flagging these circumstances, in the end aiding legislation enforcement of their efforts to guard and save harmless lives.

Source: FinCEN

The majority of the circumstances evaluated within the report concerned the alternate of cryptocurrency for “child sexual abuse material” (CSAM), usually happening on darknet marketplaces. Crypto kiosks, generally often known as bitcoin ATMs, and transactions run via mixers had been regularly utilized in these illicit transactions.

While the info examined within the report is from over two years in the past, evaluation carried out by Chainalysis means that the size of crypto-powered baby sexual abuse materials networks truly peaked in 2021. This raises issues that various cryptocurrencies and transaction methods might have gained prominence for such functions within the interim.

Bitcoin at present buying and selling at $49,635 on the every day chart: TradingView.com

Treasury To Lawmakers: Implement Enhanced Tools To Fight Dirty Money

The report additionally highlights the elevated consciousness and vigilance of economic establishments relating to the felony use of cryptocurrencies. This heightened consciousness might have contributed to the rise in reporting of crypto-related crimes over the two-year interval.

In response to those alarming findings, the US Treasury has voiced its issues to House lawmakers, urging the implementation of enhanced legislative instruments and assets to successfully fight crypto-related crimes. Brian Nelson, the Treasury’s Undersecretary for Terrorism and Financial Intelligence, emphasised the necessity for quick motion throughout a congressional listening to centered on terrorism and crypto crimes.

The use of cryptocurrency in unlawful actions poses a big problem that requires collaborative efforts from numerous stakeholders. It is crucial to proceed monitoring and addressing this subject to make sure the protection and well-being of people who’re weak to exploitation.

As the revelations from the US Treasury report make clear the darkish aspect of cryptocurrency, it’s clear that swift motion is critical to fight these crimes and defend harmless lives.

Featured picture from Adobe Stock, chart from TradingView