Bitcoin ATMs Fund Human Trafficking and Crime

Bitcoin

Posted by nassim-chentouf on .

Bitcoin ATMs serve human trafficking and crime, according to a Government Accountability Office report. The study points to some problems caused by cryptocurrency.

The blockchain is a hit like never before, especially since 2021. It must be said that NFTs are regularly talked about and that cryptocurrencies are enjoying real popularity. And although Bitcoin suffers a dramatic fall, many investors believe in this virtual currency. But according to a report by the Government Accountability Office (GAO), currency is used for human trafficking and crime. In particular bitcoin distributors. Study director Gretta Goodwin says cryptocurrency offers anonymity to users and encourages illicit activity. A recurring criticism of the digital assets that followers defend by explaining that fiat currencies are also used to finance crime. But what does GAO report?

Bitcoin and its ATMs serve human trafficking and crime, report says

Bitcoin serves crime for this study – Credit (s): Pixabay

Gretta Goodwin takes the example of Silk Road, a darknet market that disappeared that allowed drugs to be bought with payment in bitcoins. ATMs are also used to deposit cryptocurrency to convert it into cash or transfer it to other people. This method reduces the risks associated with the transport of fiat currencies. ” Drug cartels and transnational criminal organizations use virtual currencies to launder the profits of their trafficking »Declared the leader of this study. The GAO explains that banks and other financial institutions must submit suspected illegal transactions to the Financial Crimes Enforcement Network and that a spike has been noted in recent years. We are talking about past declarations of 10,000 in 2017 against 40,000 in 2020.

Drug cartels and transnational criminal organizations use virtual currencies to launder the profits of their trafficking.

The study highlights that virtual currencies are used in human trafficking and more specifically the online sex market. Bitcoin is “ the second most accepted payment method on 40 prostitution platforms “. Credit cards retain the top spot. Gretta Goodwin believes that not all the data reflect the extent of the problem. GAO suggests methods to strengthen stalking such as closer monitoring of bitcoin distributors by the Financial Crimes Enforcement Network. Specifically, the report requests the recording of additional information such as the physical addresses of these locations to make transactions more transparent.

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