Illicit crypto transactions in 2024 are likely to surpass 2023's record

Blockchain insight provider Chainalysis reported $40 billion in crypto-related criminal transactions last year, with the estimated total expected to rise above $51.3 billion

Illicit cryptocurrency transactions in 2024 are likely to exceed last year’s record volume as criminals increasingly use stablecoins to launder stolen funds, according to a report by blockchain insight provider Chainalysis.

The report, which analyzed data up to July 2024, estimated that cryptocurrency-related crimes resulted in a staggering $40 billion in transactions last year.

Further analysis is expected to push the total above $51.3 billion, considering an additional $11.3 billion in transactions that could not be fully attributed at the time.

The report focused on crypto scams, digital asset fraud, and ransomware attacks, among other unlawful activities.

At current estimates, 2024 is just $6.1 billion shy of the record criminal transaction volume analyzed in 2023.

However, bad actors have adjusted their tactics, and institutional adoption has reduced the ratio of illicit transactions relative to legitimate activity.

The report highlighted that stablecoins have become the preferred instruments for moving stolen cryptocurrency. In 2021, Bitcoin (BTC) absorbed a whopping 70% of criminal transactions.

But now, stablecoins handle the majority, with a 63% share of illicit transaction volume, while only 20% of illegal funds pass through the Bitcoin network.

Dark web vendors and users have also turned to privacy coin Monero (XMR), handling 8% of illegal transactions, and another 10% involve altcoins.

Meanwhile, legitimate crypto volume has soared, driven by institutional adoption from Wall Street. The launch of spot exchange-traded funds based on Bitcoin and Ethereum (ETH) has dramatically increased legal trading activity.

This adoption wave has reduced illicit transactions to just 0.14% of total crypto volume in 2024, compared to 0.61% in the previous year.