The world of digital assets continues to develop, and so does the tactics for cyber criminals. According to Blockchain Analytics chain chain analysis, crypto criminal transactions surpassed $ 40 billion in 2024. When new data arises, the sum is expected to exceed $ 51.3 billion, making it one of the highest on records.
Despite these astonishing figures, illegal transactions now represent a smaller proportion of total crypto activity thanks to increased institutional adoption and tighter supervisory surveillance. However, criminals have adapted and moved from Bitcoin (BTC) to Stablecoins as their preferred method for laundry funds.
Stablecoins lead in crypto crime
Chain analysis reports that Stablecoins are now dominating illegal crypto transactions and accounts for 63% of the total criminal operations in the sector. However, Bitcoin’s role in illegal business has dropped considerably, now only 20% of illegal means, compared with 70% in 2021.
This shift suggests that criminals prefer Dollar-Peggad digital assets due to their liquidity, speed and reduced price vollatility. Stablecoins enable faster border transfers, making them an effective money laundering and fraud tool.
Altcoins and privacy coins get popularity
While StableCoins have taken the center, other cryptocoirs are still used for illegal transactions. Kedallysis found that:
10% of criminal operations involve altcoins, such as Ethereum (ETH) and other digital assets.
Privacy Coin Monero (XMR) is still a favorite for dark web transactions because of its improved anonymity features.
These results indicate that although Bitcoin’s influence in crypto-related crimes decreases, cyber criminals diversify their methods to avoid detection.
Institutional adoption shrinks crypto crime
Despite the increase in crypto crime volume, the proportion of illegal transactions in relation to total trade activity has decreased. In 2024, illegal transactions accounted for only 0.14% of total crypt volume, compared with 0.61% in 2023.
This drop is largely attributed to institutional adoption. Large Wall Street companies and financial institutions have entered space and increased legitimate trade volumes. The approval of Tot Bitcoin ETFs and Ethereum-based investment products has significantly increased legal crypto transactions.
Regulatory efforts to restrict crypto crime
Governments and supervisory bodies all over the world take measures to fight crypto-related economic crimes. Some important developments include:
US Securities and Exchange Commission (SEC) Increasing review of cryptout changes and Defi platforms.
European Union’s MICA regulations (Markets in Crypto-Assets), which aims to increase openness in crypto transactions.
Legislative bodies aimed at illegal crypto transactions, leading to seizures of stolen funds and suspensions of dark web market places.
These efforts, in combination with advanced blockchain analysis tools, make it more difficult for criminals to hide stolen means and work freely.
Future trends in crypto crime
When you look forward, experts predict:
Greater use of decentralized funding (Defi) for illegal transactions that criminals try to circumvent traditional financial controls.
More AI-powered fraud, utilize deep fakes and synthetic identities to fraud investors.
Improved tracking and AML measures against money laundering, which makes it more difficult for bad players to utilize digital assets.
As governments and private companies continue to tighten the security measures, the fight against crypto criminal criminal transactions is likely to be intensified.
Conclusion: a varying crypto landscape
While Krypto criminal transactions hit $ 40 billion in 2024, their total market share is shrinking due to institutional growth and supervisory surveillance. However, criminals adapt tactics, with stablecoins, privacy coins and altcoins become the preferred tools for illegal financial activity.
When law enforcement authorities increase their focus on blockchain analysis, and as more legal frameworks emerge, the crypto sector is on the way to a more regulated and transparent future.
Image: Depositionphotos @ Jirkaeejc
