IWF Flags Cryptocurrency in Online Child Exploitation Networks

The Internet Watch Foundation (IWF) has published new statistics revealing a considerable rise in the number of sites that trade child sexual abuse material (CSAM), which has risen to over 15,031 from 7,028 in only one year. 

The official report notes that cryptocurrency is increasingly being used by the operators of such websites, as shown by the fact that over 1,000 websites were found to accept cryptocurrency payments for their services.

Crypto in human trafficking

These statistics reflect the information provided in the Chainalysis 2026 Crypto Crime Report regarding the rising volume of transactions associated with the use of cryptocurrencies to finance human trafficking. As per this report, the volume of transactions involving human trafficking increased by 85% in 2025, reaching hundreds of millions of dollars.

According to researchers, these practices are becoming more interconnected with a broader ecosystem of illegal practices, especially in Southeast Asia. 

These include scam facilities, online gambling rings, and Chinese-language money-laundering schemes that work predominantly via instant messengers like Telegram. These components combine to create an intricate global network involved in human trafficking and exploitation.

Use of Bitcoin and Stablecoins

In the Chainalysis report, the use of cryptocurrencies in human trafficking is divided into four primary categories: “international escorts,” employment agents associated with forced labor, prostitution rings, and CSAM sellers. 

The nature of cryptocurrency usage in each type differs significantly. Stablecoins are preferred for escort services and prostitution rings because of their stability and liquidity, while CSAM sellers typically used Bitcoin but are increasingly adopting other blockchain networks.

Nevertheless, as per experts, blockchain technology is considered to provide its fair share of benefits in fighting crimes involving cryptocurrency transactions. In contrast to traditional cash transactions, which lack traces, cryptocurrency transaction records cannot be hidden. The immutable nature of blockchain technology provides investigators with evidence trails that are useful in detecting criminal activity patterns.

Imposters impersonate as Iranian officials

Crypto scams are inevitably increasing, as in a recent case, imposters impersonating Iranian government officials who are currently attempting to extort cryptocurrency from shipping firms operating in the Persian Gulf, stating that they need to pay cryptocurrency in order to get safe passage through the Strait of Hormuz.

Impostors are contacting shipping companies via messages and asking for documentation along with money in the form of cryptocurrency such as Bitcoin or Tether prior to giving clearance for their safe passage. The company stressed that these threats are false and do not originate from any legitimate Iranian government institution.

Joint global effort

The importance of joint global efforts towards combating the exploitation of children and vulnerable individuals was emphasized by Chainalysis. Cooperation between technology companies, banks, police departments, and policymakers is considered crucial for breaking the infrastructure supporting such criminal activities.

With the rising popularity of cryptocurrency usage across the globe, it becomes increasingly difficult to cope with the dual nature of cryptocurrency. Namely, cryptocurrency can be used not only as a vehicle for illegal activity but also for monitoring and tracing it.

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