Bitcoin vs. crime. Very often, the best technological innovations take circuitous paths in order to demonstrate their usefulness. Because while the followers of blind criticism scream in their hearts, some quickly realize the benefits delivered. An observation unfortunately most of the time made in the camp of criminals and other fraudsters, looking for new solutions to optimize their misdeeds. This is why the Bitcoin regularly appears in official reports about the darkest activities. As in the case of this recent FinCEN investigation of the United States regarding human trafficking and child exploitation. But the data is from… 2021!
Bitcoin used in human trafficking
Let’s get things straight right away. See in the Bitcoin a major technological and monetary advance does not make one complicit in criminal activities operated with BTC. On the contrary, this use, although inglorious, demonstrates its potential as a autonomous and independent means of exchange of all control.
Because the amalgam is quickly put in place. And this very often with the active help of political authorities. The latter wishing to associate cryptocurrencies with criminal activities yet regularly demonstrated to be overvalued, even anecdotal.
However, it is impossible to ignore obscure use cases related to these digital currencies. And one of the worst of them is undoubtedly human trafficking and child exploitation highlighted in a recent report from the Financial Crimes Enforcement Network (FinCEN). An office of the United States Department of the Treasury responsible for monitoring and analyzing financial transactions to combat this type of trafficking.
“Human traffickers and perpetrators of related crimes despicably exploit adults and children for financial gain. Victims of these crimes are subjected to forced labor, slavery, involuntary servitude, peonage, and/or forced to engage in commercial sex acts. »
FinCEN
If this report is to be believed, the use of cryptocurrencies – most often Bitcoin – increased sharply during the period analyzed (2020 and 2021). Indeed, 2311 uses were reported, for an amount greater than $412 million. With a significant increase between 2020 (336) and 2021 (1975).
Data to be taken with the necessary hindsight
However, a certain safety distance must be maintained regarding this relationship. Because obviously, the regulatory and control bodies still operating with a few train delays. Even more so when the data studied to condemn a fact… are 3 years old backward.
Indeed, this report comes from documents filed by financial companies with the government in 2020 and 2021. A period identified in a recent contribution of the Chainalysis structure as being the highlight of this activity registered as CSAM (child sexual abuse material). But since then, things have changed a lot.
Because another report from Chainalysis explained last January that the crime sector seems to be abandoning Bitcoin in favor of stablecoins. And the results are clear, “over the last two years, stablecoins now represent the majority of all illicit transaction volumes. » But this seems to have escaped FinCEN!
This FinCEN report therefore points to an important use of Bitcoin in human trafficking… in 2020 and 2021. But since this period things have changed a lot. Because it is now stablecoins that occupy the forefront of this scene. Finally, even in digital version it is always the dollar that becomes the favored tool of criminals.