Elliptic Joins IWF to Combat Child Abuse Material Online

Blockchain intelligence firm Elliptic has joined the Internet Watch Foundation (IWF) to fight the financial underpinnings of online child sexual abuse material (CSAM). This partnership aims to disrupt the flow of funds supporting this horrific content by tracking cryptocurrency transactions.

Combating Online Exploitation

Elliptic‘s alliance with the IWF grants them access to the organization’s resources. This includes virtual currency alerts, providing real-time information about cryptocurrency transactions associated with CSAM purchases, including wallet addresses and payment networks.

The IWF’s acting CEO, Derek Ray-Holl, emphasized the importance of this collaboration. He stated, “By working with us, Elliptic can help to disrupt the spread of this criminal imagery and stop this type of illegal purchasing in its tracks.”

Crypto’s Role

A 2024 IWF report revealed that over 60% of child abuse websites offering payment options utilize cryptocurrencies. This makes crypto the most common payment method on such sites.

The IWF’s 2024 report found that 60.87% of commercial CSAM websites offer cryptocurrency as a payment option. This highlights the critical role crypto plays in enabling the distribution of illegal content.

Privacy Coins and Challenges

CSAM websites increasingly use privacy coins like Monero. These coins pose challenges for tracking illicit crypto transactions, potentially hindering efforts to trace the flow of funds. However, Giuseppe Fersini, Elliptic’s Head of Intel, noted that privacy coins are often used alongside traceable assets.

Fersini indicated that the firm is committed to the IWF’s mission by “providing data capabilities that are asset-agnostic and optimized to detect patterns and connections even in the face of deliberate concealment.”

According to a report by the Anti-Defamation League, in 2023, cryptocurrency was used in 23% of illicit transactions, up from 13% in 2022. This statistic underscores the growing reliance on crypto in illegal activities (ADL Report).

Future Initiatives

The IWF plans to expand its membership within the blockchain and crypto sectors. Cat McShane, the IWF’s Press Officer, highlighted the importance of disrupting CSAM commercialization, stating that having organizations like Elliptic helps this cause.