Illicit Crypto Transactions Shift to Stablecoins in 2024
Illicit crypto transactions are expected to exceed 2023’s record in 2024. According to Chainalysis, last year saw $40 billion in crypto-related criminal activities. The total is projected to surpass $51.3 billion as more data comes in.
These illegal activities include scams, fraud, and ransomware attacks.Currently, 2024 is just $6.1 billion short of the 2023 record. Though, criminals are changing their tactics. They are moving away from Bitcoin and towards stablecoins for laundering stolen funds.
Stablecoins now account for 63% of illicit transactions, compared to just 20% for Bitcoin. in 2021, Bitcoin made up 70% of criminal transactions. Dark web users are also turning to privacy coins like Monero, while 10% of illegal transactions involve altcoins.
Despite this, legitimate crypto volume is surging due to institutional adoption.The launch of spot exchange-traded funds for Bitcoin and Ethereum has boosted legal trading.This has reduced illicit transactions to just 0.14% of total crypto volume in 2024, down from 0.61% in 2023.
Chainalysis notes that while the absolute volume of illicit transactions is rising, the proportion relative to legitimate activity is shrinking. This shift highlights the growing sophistication of criminals in the crypto space.
