2024 witnessed a significant surge in illicit cryptocurrency transactions, cumulatively reaching an estimated $51 billion, as reported by blockchain analytics firm Chainalysis. This surge occurred alongside a reenergized crypto market, which saw renewed enthusiasm due to developments like the introduction of U.S. exchange-traded funds and a boost from Donald Trump’s election victory. However, illicit activities constituted a mere 0.14% of the total crypto market, marking a three-year low.
Back in 2023, illicit crypto activities accounted for 0.61% of the market, nearing the 2021 low of 0.12%. Chainalysis pointed out the 2024 figure might be understated, suggesting future investigations could reveal more illicit activities.
“2024 seems to have set a new record for inflows to illicit actors,” the firm noted in a blog post dated January 15, indicating these figures might rise as data continues to unfold.
The total market value of cryptocurrency peaked at $3.9 trillion in December 2024, further propelling the traction digital assets gained. Transnational organized crime groups were amongst the prime beneficiaries, leveraging cryptocurrencies for traditional criminal ventures, including money laundering and trafficking of drugs, humans, and wildlife. Of the $40.9 billion in illicit crypto volume recorded in 2023, a notable $11 billion was funneled towards wallets linked to hacking, scams, extortion, and trafficking.
Explore further insights in the 2025 Chainalysis Crypto Crime Report, which highlights the increasing professionalization within the illicit crypto ecosystem. Stablecoins remained the predominant medium for transferring illicit funds, comprising nearly two-thirds of such transactions. It's noteworthy that stablecoins also dominate the overall crypto market, with about 77% of total transaction volumes.
While the decline in the fraction of illicit transactions forms a positive narrative, Chainalysis warns potential increases are on the horizon with the advent of fresh data. Historically, illicit crypto use has hovered persistently below 1%, reflecting ongoing obstacles in addressing financial crimes within this sector.
In another dimension of security threats, Web3 professionals have recently been targeted by a sophisticated malware campaign. Cado Security Labs disclosed that scammers are using fake meeting applications to deceive users and extract sensitive credentials and crypto assets. Through AI-generated convincing websites and social media profiles, the scammers manage to distribute malicious apps like “Meetio.” Such apps deploy Realst information stealers to exfiltrate data, including Telegram and banking logins, as well as cryptocurrency wallet credentials.
Recent investigations noted similar schemes, with 21 developers, possibly linked to North Korea, infiltrating crypto projects under false identities. Additionally, the FBI highlighted North Korean hackers targeting crypto firms with malware disguised as job offers.