Crypto Analytics Tackles $150-Billion Human Trafficking Industry
Global statistics on human trafficking from the International Labour Organization reveal an estimated 40.3 million victims are forced into some type of labor for commercial sex every day, fueling an industry that generates $150 billion in profits each year.
Cryptocurrency intelligence and blockchain security CipherTrace is partnering with the newly-formed Anti-Human Trafficking Intelligence Initiative (ATII) to disrupt the operations, economics and anonymity of the industry by following the money.
As the cryptosphere grows, supporters and detractors alike point out that Bitcoin and other digital assets are used to fuel crime and illicit transactions linked to human trafficking. Blockchain experts can use data generated by crypto transactions to follow the trail to its source.
Based in Silicon Valley, CipherTrace will provide the non-profit organization ATII with a license for its user interface which allows users to trace transactions involving more than 700 virtual assets.
Pamela Clegg, CipherTrace’s director of financial investigations and education, will serve on ATII’s advisory board.
“Millions of men, women, and children are trafficked in countries around the world. It’s not enough anymore just to say no to human trafficking. We have to be proactive, aggressive and go after those facilitating, engaging in and benefiting from trafficked persons. As with most criminal organizations and activities, following the money is the most effective way to combat this global crime.
CipherTrace has been working with several different agencies, such as INTERPOL and Lawyers Without Borders, to combat human trafficking and the use of cryptocurrency to facilitate and support global trafficking of persons.”
According to ATII founder Aaron Kahler, the effort involves multiple parties and professionals who are working to increase prevention, detection and reporting.
“CipherTrace will be an instrumental partner in helping us promote corporate responsibility within financial institutions such as cryptocurrency exchanges. As public and private organizations continue to collaborate in the creation of a uniform front within the financial sector to fight human trafficking, we will see a true impact in the recovery of victims and prosecution of traffickers.”
A report published by International Labour Organization, entitled, Global Estimates of Modern Slavery, reveals that women and girls accounted for 71% of modern slavery victims in 2016, and 89 million people endured some form of captivity, ranging in duration from days to five years, from 2011 to 2016.