Internet Crimes Against Children and Cryptocurrency: Day 1 - January 15, 2026

Introduction

Hello, my name is Dan Barry. I serve as an Internet Crimes Against Children (ICAC) investigation specialist with the Zero Abuse Project, a leading training and technical assistance provider for the national ICAC task force network. The primary objective of today’s training is to equip law enforcement and investigative professionals with the specialized knowledge required to combat online child exploitation, focusing specifically on the evolving intersection of digital technology and internet-related crimes.

Background

Dan Barry's Background

• Professional Experience: Over $23.5$ years of dedicated service with the Tucson Police Department.

  • Patrol Operations: Served $6.5$ years as a patrol officer in Tucson, Arizona, gaining foundational field experience.

  • Federal Collaboration: Cross-deputized with the United States Marshals Service, facilitating extensive coordination with federal attorneys and multi-jurisdictional agencies.

  • Recognition: Received prestigious awards for exceptional victim assistance in cybercrime cases within the state of Arizona.

  • ICAC Specialization: Spent nearly a decade as a dedicated investigator within the ICAC unit, specializing in complex child sexual abuse material (CSAM) investigations.

• Transition to Zero Abuse Project: Following a distinguished career in municipal law enforcement, Dan transitioned to the Zero Abuse Project to address the critical need for training and resource allocation amidst nationwide staffing shortages in large-scale agencies.

Nithin Jilla's Background

• Role: Technical Consultant for the Zero Abuse Project and Partner at Excelsior Creative, a specialized web development and Artificial Intelligence (AI) agency.

• Expertise: Nithin brings deep technical proficiency in computer science and the burgeoning field of cryptocurrency. His work focuses on developing specialized training modules that simplify complex blockchain data for law enforcement applications.

• Objective: To demystify the technical barriers associated with cryptocurrency, enhancing the investigative capabilities and technical comfort levels of trainees.

Structure of Training

• Adaptive Format: The training is designed to be flexible, accommodating the demanding schedules of active-duty investigators with planned breaks and modular learning.

• Interactivity: The session prioritizes active engagement through technical discussions, real-time Q&A, and collaborative problem-solving.

• Resource Accessibility: Participants are provided with a suite of digital resources and are encouraged to utilize chat and voice features for hands-on exercises.

• Advanced Curriculum: Plans are currently underway to launch an advanced cryptocurrency investigation course, featuring collaborations with industry leaders such as Chainalysis to provide high-level forensic insights.

Foundations of Cryptocurrency and Blockchain

• Definition: Cryptocurrency is a decentralized digital or virtual currency secured by advanced cryptography. Unlike fiat currency, it operates independently of a central bank.

• Blockchain Technology: A distributive ledger technology (DLT) that records all transactions across a network of computers. Key features include:

  • Immutability: Once a transaction is recorded, it cannot be altered or deleted.

  • Transparency: The entire history of transactions is publicly verifiable on the ledger.

  • Decentralization: No single entity has control over the entire network.

Types of Cryptocurrency Consensus Mechanisms

• Proof of Work (PoW):

  • Mechanism: Miners utilize high-performance computational hardware to solve complex mathematical puzzles, which validates transactions and secures the network (e.g., Bitcoin).

  • Challenges: High energy consumption and the trend toward centralized mining pools where specialized hardware (ASICs) is required to remain competitive.

• Proof of Stake (PoS):

  • Mechanism: Validators are selected based on the number of coins they "stake" or lock up in the network. This eliminates the need for energy-intensive mining.

  • Benefits: Incentivizes long-term participation, increases network scalability, and significantly reduces the environmental footprint.

• Proof of History (PoH):

  • Mechanism: Primarily utilized by the Solana ($SOL$) blockchain, PoH creates a historical record that proves an event occurred at a specific moment in time. This acts as a digital clock for the network, drastically increasing transaction speeds and efficiency.

Criminal Exploitation of Cryptocurrency

• Anonymity vs. Pseudonymity: While blockchain provides a public record, user identities are often shielded behind alphanumeric wallet addresses, which criminals exploit for child exploitation and other illicit activities.

• Money Laundering: A multi-stage process involving:

  • Placement: Introducing illicit funds into the financial system.

  • Layering: Moving funds through various accounts and cryptocurrencies to distance them from the original crime.

  • Integration: Returning "clean" funds to the criminal for legitimate use.

• Dark Web Ecosystem: Marketplaces on the dark web predominantly utilize Bitcoin ($BTC$) and privacy coins (like Monero, $XMR$) for the purchase and distribution of CSAM and illegal narcotics.

• Crypto Mixers and Tumblers: Specialized services that scramble transactions from various users, making it exceptionally difficult for investigators to trace the digital trail back to its source.

Law Enforcement Investigative Strategies

• Advanced Analytics Tools: Use of industry-standard software such as Chainalysis and TRM Labs to visualize transaction flows and identify high-risk entities.

• Blockchain Forensics: Analyzing the public ledger to identify patterns, such as "peeling chains" (where small amounts of crypto are peeled off a larger balance) to uncover the structure of criminal organizations.

• Know Your Customer (KYC) Data: Leveraging legal processes to obtain identification data (names, IDs, IP addresses) from centralized exchanges (CEXs) like Coinbase or Binance.

• Financial Intelligence Units (FIUs): Strategic collaboration with banking institutions and international financial regulators to freeze assets and prevent the liquidation of illicit crypto holdings.

Case Study: Pediatric Dentist Investigation

• Scenario: An investigation into a professional pediatric dentist involved in the procurement of CSAM.

• Investigative Path: Investigators identified a Bitcoin transaction linked to a known darknet vendor. By tracing the funds, they moved from the anonymous darknet wallet to a centralized exchange wallet.

• Outcome: A subpoena for KYC data provided the suspect's legal identity and home address. Digital forensics on seized devices revealed a history of wallet operations and saved private keys, providing the "smoking gun" required for a successful prosecution.

Interactive Technical Exercise: Wallet Tracking

• Practical Mission: Participants were assigned a specific wallet address and required to use "Blockchain Explorers" to conduct a forensic audit.

• Key Metrics Analyzed:

  • Transaction History: Dates, times, and amounts of all incoming and outgoing transfers.

  • Asset Allocation: Identifying various tokens or NFTs held within the wallet.

  • Attribution: Attempting to link the wallet to a known entity or exchange using attribution tags.

• Tools Disseminated: Arkham Intelligence (for entity mapping), DappRadar (for tracking decentralized apps), Etherscan (for Ethereum-based tracking), and OpenSea (for NFT-related investigations).

Conclusion and Future Outlook

• Summary: This training serves as the baseline for operationalizing blockchain forensics within child exploitation units. Understanding the mechanics of the ledger is the first step in dismantling digital criminal networks.

• Ongoing Education: Law enforcement must remain agile as technology shifts toward Decentralized Finance (DeFi) and privacy-enhancing technologies. Future sessions will deep-dive into dark web navigation and advanced covert operations in the crypto space.

• Collaboration with cybersecurity experts: This is essential to bolster the capacity of law enforcement to combat these evolving threats effectively. By forming multidisciplinary teams that include technologists, data analysts, and legal advisors, we can enhance our investigative capabilities and adapt to the rapidly changing landscape of digital crimes.