Bitcoin (BTC) became a popular vehicle for illicit transactions several years ago to support the burgeoning global business of smuggling and human exploitation, according to . Analysis released Tuesday According to the U.S. Department of the Treasury.
According to a trends report released by the Treasury Department's Financial Services Agency, government filings from financial companies in 2020 and 2021 show that cryptocurrencies (most commonly The use of Bitcoin (Bitcoin) has increased. Crime Enforcement Network (FinCEN). In his two-year period, he was reported for 2,311 cases of using cryptocurrencies in such crimes, which amounted to more than $412 million, the analysis found.
The report states that “victims of these crimes are subjected to forced labor, slavery, involuntary servitude, imprisonment, or forced to engage in commercial sex acts.” And the use of cryptocurrencies is rapidly increasing, with 1,975 cases reported in 2021, up from 336 cases in 2020.
“Human traffickers and perpetrators of related crimes despicably exploit adults and children for financial gain.” Andrea Gacki, Director of FinCEN, said:, in a statement. Financial companies reporting these incidents “ultimately helps law enforcement protect and save innocent lives.”
However, the most recent data examined was from December 2021, which is more than two years old. This period preceded the crypto winter and subsequent recovery in recent months.
The majority of cases assessed in this report involved the exchange of cryptocurrencies for “child sexual abuse material,” and “CSAM” typically includes explicit photos and videos of children. He pointed out that transactions are generally carried out through cryptocurrency kiosks (commonly known as FinCEN, Bitcoin ATMs), or mixers.
Cryptocurrency usage and general transaction methods have undergone several changes since that time, with crypto data firm Chainalysis stating that “the scale and severity of CSAM activity peaked in 2021.” That's what it means. Reviews published last month.
FinCEN's report suggests that part of the two-year increase may have been driven by “heightened awareness and vigilance” among financial institutions following information about the criminal use of cryptocurrencies.
