Following the money 2.0 - A collaborative approach to human trafficking investigations involving virtual assets

As financial ecosystems evolve, so do traffickers’ methods. The rapid expansion of virtual assets and blockchain based technologies has created new opportunities for anonymity, speed, and cross border movement of funds - features that are attractive to criminal networks engaged in human trafficking. Cryptocurrencies now facilitate a range of trafficking related activities, from payments for sexual exploitation of children to the financing of cyber enabled scam compounds where trafficking victims are forced into criminality. 

These developments intersect with broader patterns of exploitation, including the recruitment of vulnerable individuals through deceptive online job offers and the use of advanced technologies, such as Artificial Intelligence, to scale criminal operations. This paper examines how cryptocurrencies are being misused within trafficking economies, the regulatory and operational gaps that enable such misuse, and the urgent need for coordinated and proactive responses. We propose guidance in six steps, including a list of red-flag indicators to support financial intelligence and institutions and criminal justice practitioners in the detection of trafficking related to both digital and financial footprints of victims and trafficking perpetrators.