Collaboration Against Child Sexual Abuse Material in Cryptocurrency
In a significant move to tackle the financial mechanisms supporting child sexual abuse material (CSAM) through cryptocurrency, Elliptic, a leading company in blockchain intelligence, has joined forces with the Internet Watch Foundation (IWF). This collaboration will enhance Elliptic’s capabilities by enabling access to the IWF’s services, including timely alerts regarding cryptocurrency transactions linked to CSAM, thus allowing for a proactive approach in identifying payment networks involved and monitoring specific wallet addresses.
Significance of the Partnership
Derek Ray-Holl, the acting CEO of the IWF, highlighted the critical role of their analysts in discovering alarming content that fuels these criminal operations. He emphasized that by teaming up with Elliptic, there is a potential to significantly disrupt the circulation of harmful and unlawful imagery tied to child exploitation.
Urgent Action Required
The urgency of addressing cryptocurrency’s role in such crimes has been underscored recently by U.S. Senators Elizabeth Warren (D-MA) and Bill Cassidy (R-LA), who noted in a bipartisan letter to the Department of Justice and the Department of Homeland Security that cryptocurrencies have become the “payment of choice for child abuse material.” This observation is further supported by the IWF’s Annual Data & Insights Report for 2024, which revealed that a vast majority—60.87%—of commercial CSAM websites accept cryptocurrencies as a payment option, emphasizing the persistent threat posed by this method.
Trends in CSAM Payments
A previous IWF report from November 2022 stated a troubling trend: the number of CSAM sites accepting crypto has steadily increased since 2015, though numbers seem to have stabilized at 1,014 in the most recent findings. Elliptic views its partnership with the IWF as a critical aspect of its broader initiative to promote a safer online environment.
Giuseppe Fersini, the Head of Intel at Elliptic, expressed the company’s commitment to not only integrating vital data from the IWF into its platform but also engaging in strategic conversations on how payment systems, especially cryptocurrencies, are exploited in the trafficking of CSAM.
Challenges with Privacy-Oriented Cryptocurrencies
The rise of privacy-oriented cryptocurrencies like Monero poses additional challenges for organizations such as Elliptic and the IWF. A recent report from Chainalysis indicated a growing trend among CSAM websites utilizing Monero for its anonymity, allowing perpetrators to operate with reduced risk of detection.
Despite the complexities presented by such privacy coins, Fersini reassured that they are often used in conjunction with traceable assets, forming part of a broader strategy for concealment rather than a sole means of escape from scrutiny. He further noted the necessity for sophisticated intelligence solutions to trace illicit transactions effectively, affirming Elliptic’s dedication to providing adaptable data analysis tools capable of identifying patterns even when evading tracing methods.
Future Initiatives
Looking ahead, the IWF intends to broaden its outreach within the blockchain and cryptocurrency sectors. Cat McShane, the IWF’s Press Officer, acknowledged the importance of collaboration with firms like Elliptic and others, such as Chainalysis, in the ongoing effort to curtail the commercial exploitation of CSAM.
The joint efforts between Elliptic and the IWF signify a united front in the digital landscape, underscoring the importance of innovative solutions and collective action in the fight against child exploitation online.
