Elliptic Joins IWF to Combat CSAM Financing via Cryptocurrency

Blockchain intelligence firm Elliptic has joined the Internet Watch Foundation (IWF), a nonprofit organization dedicated to combating online child sexual abuse materials (CSAM). This partnership is part of Elliptic's ongoing efforts to prevent the financing of CSAM through cryptocurrency transactions.

Through this collaboration, Elliptic gains access to the IWF's range of services, including its virtual currency alerts. These alerts provide real-time data on cryptocurrency transactions involving the purchase of CSAM, identifying the payment networks and wallet addresses used in these transactions. By integrating with the IWF's real-time alert system, Elliptic aims to better assist its clients in preventing transactions associated with child abuse and exploitation.

Derek Ray-Holl, acting CEO of the IWF, emphasized the importance of this partnership. "IWF analysts find images and videos of some of the worst types of child sexual abuse on websites that profit from the sale of this horrific content," he said. "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."

According to the IWF’s Annual Data & Insights Report 2024, cryptocurrencies are the most commonly offered method of payment on commercial CSAM websites. The report found that 60.87% of URLs that do not hide payment options enable crypto transfers. This trend highlights the growing use of cryptocurrencies in facilitating illegal activities online.

Elliptic's partnership with the IWF is part of its broader efforts to create a safer digital ecosystem. Giuseppe Fersini, Elliptic’s Head of Intel, stated that the firm is an "engaged member" of the IWF’s global alliance. "We support IWF’s vital mission not only through the integration of relevant data into our blockchain intelligence platform, but also through active participation in strategic discussions and knowledge-sharing around how payment systems, including cryptocurrencies, are exploited in the distribution of child sexual abuse material," he added.

The use of privacy coins such as Monero by CSAM websites poses a challenge for organizations like the IWF and Elliptic. These coins offer ways to obscure the source and destination of funds, making it difficult to trace illicit crypto transactions. However, Fersini noted that privacy coins are often only complementary to traceable assets and may be part of a wider obfuscation strategy. Elliptic addresses this challenge by providing data capabilities that are asset-agnostic and optimized to detect patterns and connections even in the face of deliberate concealment.

Looking ahead, the IWF is planning to expand its membership into the blockchain and crypto industry. The organization already works with blockchain analytics firm Chainalysis and sees the addition of Elliptic as a significant step in disrupting the commercialization of CSAM. "It is imperative that we disrupt the commercialization of CSAM as much as we can and having organizations like Elliptic on our side really aids this," said Cat McShane, Press Officer for the IWF.