The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has observed an increase in Bitcoin transactions linked to human trafficking and online child exploitation.
A recent report from FinCEN revealed that 95% of cases involving online child exploitation and human trafficking were connected to digital assets or convertible virtual currencies. Bitcoin has particularly been used as a means of payment in exploitation cases.
In 2021, the number of reported online child exploitation and human trafficking cases involving virtual currency rose to 1,975 from 336 in 2020. FinCEN’s primary objective is to protect the financial system from illegal activities and combat money laundering while promoting national security.
Out of the 2,311 reports received, FinCEN identified Bitcoin as the primary virtual currency used in over 2,157 cases related to human trafficking and online child exploitation. The network also identified more than 1,800 unique wallet addresses associated with suspected offenses.
FinCEN Partners with Project Protect
To address this alarming trend, FinCEN has partnered with the Canadian financial intelligence unit’s “Project Protect,” a public-private partnership focused on combating human trafficking. FinCEN has recognized human trafficking and cybercrime as key priorities in countering money laundering and terrorism financing.
In October, FinCEN proposed record-keeping and reporting requirements for domestic financial institutions regarding crypto mixers due to an increasing percentage of suspicious transactions originating from illicit sources.
Treasury Highlights Crypto Used by Criminals
The U.S. Department of the Treasury recently released its National Risk Assessments on Money Laundering, Terrorist Financing, and Proliferation Financing. The report warned about the growing use of cryptocurrencies by criminals and illicit entities.
Appeal to Report Cases
FinCEN urges the public to report any instances of child exploitation and human trafficking to law enforcement. The U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) tip-off line can be reached at 1-866-DHS-2-ICE (1-866-347-2423), and international authorities can be contacted at 802-872-6199.
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