I just read a recent study by FinCEN which sheds light on the frequent use of Bitcoin in transactions related to human trafficking and child sexual exploitation.
Bitcoin, as the leading cryptocurrency in the market, is inevitably associated with various criminal activities, including those affecting the sensitive areas of human trafficking and child sexual exploitation. The recent analysis by the Financial Crimes Enforcement Network (FinCEN) underscores this troubling reality.
The main revelations of the report :
2020 and 2021: Exponential Illicit Use Of Bitcoin
The data collected reveals a significant increase in its usage in these fields during the years 2020 and 2021. More than 2,311 cases of abusive use of cryptocurrencies have been reported, representing a total amount exceeding 412 million dollars. The use of these 412 million dollars, you may ask?
412 million dollars were mainly used to purchase material involving sexual abuse of children, such as photos and pornographic videos.
The victims of these crimes are subjected to forced labor, slavery, involuntary servitude, peonage, and/or forced to engage in commercial sexual acts.
Excerpt from the report on trends published by the Ministry of Treasury Finances
The Actual Situation Of Bitcoin/Illegality
FinCEN expresses its gratitude to financial institutions that have reported these illicit activities, emphasizing that these declarations contribute to protecting and saving innocent lives through the intervention of competent authorities.
Although the report highlights the extent of Bitcoin’s use in criminal activities, it is important to note that this data dates back to December 2021. Chainalysis has observed about crypto that illicit activities as ramsomware and darknet increase, but scamming and stolen funds fall.
Does Bitcoin serve human trafficking less than before? Probably.
Are crypto-currencies serving human trafficking less than before? I do not think so. And stablecoins support this idea.