In 2024, the cryptocurrency landscape witnessed a significant surge in illicit activities, with approximately $40 billion funneled into addresses associated with criminal endeavors. This figure, reported by blockchain security firm Chainalysis, is expected to rise to an estimated $51.3 billion as more historical crimes come to light.
This uptick in illicit crypto transactions coincided with a landmark year for institutional adoption, notably the approval of spot Bitcoin ETFs. Despite the increase in criminal activity, the proportion of illicit transactions relative to the total cryptocurrency market volume decreased to 0.14% in 2024, down from 0.61% in 2023.
A notable shift in the modus operandi of cybercriminals is evident: while Bitcoin accounted for approximately 70% of illicit transactions in 2021, its share plummeted to around 20% in 2024. Conversely, stablecoins have become the preferred medium, constituting 63% of illicit transactions. This trend underscores the appeal of stablecoins' price stability and liquidity for illicit purposes.
The year also witnessed significant security breaches, most prominently the $1.5 billion hack of the Bybit cryptocurrency exchange in February 2025. Attributed to North Korean-linked hacking groups such as TraderTraitor and Lazarus Group, this incident stands as the largest single crypto theft to date. The hackers employed malware-infected cryptocurrency trading applications to execute the heist, subsequently converting the stolen assets into Bitcoin and other cryptocurrencies for laundering purposes.
Stablecoins, particularly Tether (USDT), have come under scrutiny due to their association with illicit activities. Reports indicate that Tether has been increasingly implicated in investigations related to money laundering, terrorism financing, and sanctions evasion. Despite these concerns, Tether maintains its position as a widely used stablecoin, with over $138 billion in issuance and significant profits.
The rise of platforms like Huione Guarantee further complicates the crypto crime landscape. Identified as the largest illicit online marketplace to date, Huione facilitates a range of scam services, including money laundering and the provision of deepfake tools. Its rapid growth, with $24 billion in gray market transactions, highlights the evolving challenges in combating crypto-related crimes.
In response to these developments, regulatory bodies and law enforcement agencies are intensifying efforts to monitor and curb illicit activities within the crypto space. The dynamic nature of cryptocurrency markets necessitates continuous adaptation and vigilance to address emerging threats and ensure the integrity of the financial system.