The value of cryptocurrencies funneled to illicit addresses in 2024 is expected to exceed the 2023 total, according to a new report by American blockchain analytics firm Chainalysis.
In its 2025 crypto crime report, released on January 15, Chainalysis revealed that illicit digital wallets received $40.9 billion (S$56 billion) worth of cryptocurrencies in 2024, a figure already nearing 2023’s revised total of $46.1 billion. The report, however, suggests that as more data becomes available, the final 2024 figure could climb to $51 billion.
“By this time next year, these totals will be higher, as we identify more illicit addresses and incorporate their historic activity into our estimates,” Chainalysis noted.
Crypto Crime Peaks and Trends
Between 2020 and 2024, crypto crime reached its highest level in 2022, when $54.3 billion flowed into illicit addresses. This spike included claims from creditors of the collapsed cryptocurrency exchange FTX.
FTX, which filed for bankruptcy in late 2022 following a liquidity crisis, has left a lasting mark on the industry. Its co-founder and former CEO, Sam Bankman-Fried, was sentenced to 25 years in prison in March 2024 for defrauding customers and investors.
While the overall share of illegal crypto activity fell to 0.14% of on-chain transactions in 2024 from 0.61% in 2023, Chainalysis cautions that this figure is likely to rise as more data is analyzed. Historically, however, the proportion of illicit activity in crypto transactions has remained below 1%.
Shift in Illicit Activity
As cryptocurrencies become more widely adopted, their use in illegal activities has evolved. Once primarily tied to cybercrime, on-chain activity is now used to fund and facilitate threats to national security and consumer protection.
Stablecoins, which are cryptocurrencies pegged to traditional assets like fiat currencies or commodities, have gained prominence among illicit actors. By 2024, stablecoins accounted for 63% of all illicit transaction volume, marking a significant shift from Bitcoin, which had been the preferred currency for cybercriminals in earlier years.
Stablecoin activity surged by 77% year-on-year in 2024, driven in part by sanctioned entities relying on them due to difficulties in accessing US dollars through traditional means. However, Bitcoin continues to dominate ransomware payments and darknet market sales, while scams and money laundering span across various crypto assets.
Fraud and Scams Remain Pervasive
Fraud and scams were widespread in 2024, with stolen funds increasing by 21% year-on-year to $2.2 billion. High-yield investment scams and “pig butchering” schemes—where victims are deceived into long-term fraudulent investments—were identified as the most successful tactics.
Chainalysis also flagged the growing role of artificial intelligence in enabling fraudulent activities, adding a new layer of sophistication to scams targeting unsuspecting investors.
Despite these challenges, the report underscores that crypto crime remains a relatively small fraction of overall blockchain activity. As regulation and oversight evolve, the industry continues to grapple with balancing innovation and security.
