Crypto Crime Totals Over $40 Billion in 2024, And Stablecoins in the Storm’s Center

The scope of crypto crime keeps growing, with illegal activity totaling over $40 billion for 2024, according to a recent Chainalysis report on blockchain analysis. The firm estimates that the figure can rise to over $51.3 billion when more data are published and that 2024 could be a record year for crypto crime.  

Shift from Bitcoin to Stablecoins  

Whereas previously Bitcoin was the favorite of illicit transactions, there is a new heart according to the report, on the side of cybercriminals. For 2021, Bitcoin comprised about 70% of illegal cryptocurrency activity. Stablecoins lead the pack nowadays, with 63% of the share of unlawful transaction value, while Bitcoin’s share fell to just 20%. Stablecoins also become increasingly attractive to criminals since they are safer and rightfully embraced elsewhere, thus making them an even better money laundering choice. 

The Evolution of Crypto Crime 

Chainalysis examined illegal activity, from fraud to scams and ransomware attacks. While 2024’s illicit transaction volume lags only $6.1 billion behind 2023’s record, institutional investors’ increased adoption of cryptocurrency has caused the steep decline in the percentage of all cryptocurrency transactions with illicit activity.  

In reality, raw figures are up, but illicit trades constitute just 0.14% of total crypto volume for 2024, much smaller than 0.61% for last year. This figure proves that the overall crypto market is returning to normal, and regulation and compliance measures are suppressing criminal activity. 

Privacy Coins and Alternative Crypto Channels 

Other anonymity-focused cryptocurrencies such as Monero (XMR) are also gaining popularity among cybercrime perpetrators and dark web traders looking to leave a trail. To a lesser extent, approximately 10% of criminal transactions use other cryptocurrencies (altcoins), showing diversification of criminal activity within the category of crypto assets. 

Institutional Adoption Drives Legitimate Crypto Growth 

While illicit business remains robust in the cryptosphere, the volume of honest transactions has expanded exponentially via institutional investment, driven predominantly by institutional investment. The launch of Bitcoin and Ethereum spot exchange-traded funds (ETFs) and increased Wall Street engagement have increased legal trading activity. As increasingly mainstream, widespread acceptance expands, the aggregate portion of illicit transactions to legitimate transactions decreases, a sign of an increasingly matured, regulated digital asset marketplace.  

Final Thoughts  

The increase in criminal crypto transactions shows the widespread challenges of crypto security and regulation. While less comforting, the decreasing ratio of criminal activity to overall market activity shows that cryptocurrency is becoming more resistant to abuse. As regulators continue to be strengthened and institutions increasingly turn towards digital assets, the future of cryptocurrency is heading towards greater legitimacy and stability.