FinCEN Reports Rise in Bitcoin Use for Human Trafficking

The United States Financial Crimes Enforcement Network (FinCEN) has released a report indicating an increase in the use of cryptocurrencies in global crimes related to human trafficking and child sexual exploitation during 2020-2021.

The agency’s analysis referenced data from financial companies. During the specified period, they collectively recorded 2311 instances of transactions for these illegal activities in digital assets, most often in bitcoins, amounting to over $412 million.

A sharp rise was noted in 2021, with 1975 reports compared to 336 in 2020.

“Victims of these crimes are subjected to forced labor or coerced into commercial sex acts,” the report states.

The latest data examined on the topic is dated December 2021.

Most cases reviewed in the report involved the exchange of cryptocurrency for CSAM. Transactions were conducted either through bitcoin ATMs or via mixers.

FinCEN linked the frequency of detecting such operations to “increased awareness and vigilance” by financial institutions informed about the criminal use of digital assets.

In 2022, the US Senate discussed a potential ban on cryptocurrencies, citing their use in human trafficking and other criminal activities as one of the reasons.

Earlier, JPMorgan CEO Jamie Dimon criticized digital assets, describing their only uses as “money laundering, fraud, human trafficking, and tax evasion.”