According to Blockchain Analytics Firm Chainalysis, illegal crypto transactions exceeded $51 billion in 2024, significantly higher than previous underreported estimates.
Findings published in the company’s latest Crypto Crime Report show a surge in AI-driven fraud, Stablecoin Laundering, and sophisticated cybercrime networks.
Despite initial predictions suggesting a decline in crypto-related crime, deeper analysis reveals that offenders are shifting away from Bitcoin (BTC) in favor of stubcoin and privacy-focused assets, and adapting to regulatory scrutiny.
The report also highlighted the increasing reliance on automated deceptions and defi platforms to obscure illegal transactions.
Criminals prefer stablecoins
Once the dominant currency in illegal trading, Bitcoin has been the shrinking of crypto crime.
Chainalysis reported last year that Stablecoins was involved in 63% of illegal crypto transactions, marking the third consecutive year of over Bitcoin in this role.
Unlike Bitcoin, which has relatively slow check times and high volatility, Stablecoins offers instant transactions nearby, while minimizing price fluctuations.
This has become a preferred tool for washing large sums through cross-chain bridges, mixers and distributed platforms, allowing criminals to quickly shift funds and avoid detection.
Major Stablecoin publishers such as Tether have tried to crack down on illegal activities by freezing wallets related to cybercrime. However, criminals have resorted to alternatives such as Monero, independent wallets and privacy-focused cryptocurrencies such as Defi-based laundry schemes.
Cybercrime and market manipulation
The report also noted that ransomware payments had declined by 35% year-on-year. While this initially appeared to show progress in the fight against cyber fear tor, Chain Orisys discovered that ransomware operators instead diversified tactics.
Following the takedown of the Rockbit Ransomware Group, small cybercrime syndicates have bridged the gap and more decentralized service operations as ransomware.
Cybercriminals are increasingly focused on data theft and fear tor, pose a threat to leak sensitive information rather than demanding ransom payments.
Beyond direct financial crime, Chainalysis has discovered that market manipulation schemes remain a critical issue in the crypto sector. Dexs has become a hub for waste trading. There, fraudulent traders artificially inflate trading volumes to mislead investors.
The report estimates that the $2.57 billion illegal trading volume in 2024 is related to washing transactions and market manipulation. Scammers used automated bots to create illusions of demand, raising token prices, and then implemented a classic “pump and dump” scheme that left unworthy assets to unsuspecting investors.
In one well-known case, Crypto Firm Cls Global pleaded guilty to trading tokens secretly created by the FBI as part of its Sting tactic.
Arms race
The Chainalysis ‘135 page report also examined broader trends in crypto crime, including laundry platforms as laundry, the decline in the darknet market, and the growing role of AI in financial fraud.
The investigation details how North Korean hackers stole a record $1.34 billion last year, highlighting the sustained challenges facing regulators and law enforcement.
Regulation scrutiny is expected to be increased as Stablecoins play an increasing role in money laundering. Meanwhile, the use of AI-powered scams, including Deepfake Scams and Synthetic Identity Theft, is expected to expand, making it even more difficult to track illegal financial activities.
As cybercriminals continue to adapt to enforcement actions, experts warn that the fight between regulators and illegal actors will only escalate the future of financial crime and digital assets surveillance.
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