🚨Chainalysis reveals: Amazing growth of China’s cryptocurrency CSAM network
😱 Today we are going to talk about a very serious topic. A disturbing trend has been uncovered, with a significant increase in the number of vendors engaged in distributing child sexual abuse material (CSAM) in China, according to a new report from Chainalysis.
📊 The report states that the proportion of global CSAM inflows denominated in RMB has increased since the end of 2023, with Chinese suppliers accounting for 38.8% of total CSAM inflows in the first quarter of 2024. This means that nearly 4 out of every 10 CSAM transactions are related to China.
🔐 What’s even more worrying is that these vendors are leveraging cryptocurrencies to facilitate their transactions. Buyers can purchase access to CSAM materials at extremely low prices, which not only facilitates this heinous crime but also makes it more difficult to track and combat.
🆕 It is reported that the rise of these providers coincides with the emergence of new on-chain infrastructure. Many Chinese address wallets are relatively new, suggesting that these networks are not only exploiting existing systems but are actively expanding and developing new mechanisms to evade detection.
🔄 The report also found that CSAM vendors utilize instant redemption tool platforms when cashing out. While user-friendly, these non-custodial platforms have also become conduits for money laundering and fund transfer.
🇨🇳 Chainalysis has also seen an increase in the use of Chinese marketplaces and money laundering networks, including Huione Guarantee, an online marketplace linked to Cambodian conglomerate Huione Group. The platform has processed more than $49 billion in cryptocurrency transactions since 2021, and it connects buyers and sellers without verifying the legitimacy of the goods.
🤔 This report reminds us that the anonymity and convenience of cryptocurrency are being exploited by criminals. We need to strengthen supervision, raise public awareness, and work together to combat this heinous behavior.
💬 What do you think of this report’s findings? How do you think CSAM and other cybercrime can be combated more effectively? In the cryptocurrency space, how can we effectively find a balance between protecting user privacy and fighting crime? Share your thoughts in the comments section!
