Crypto Crime in 2024 Likely Exceeded $51B, Far Higher Than Reported: Chainalysis

Crypto crime has entered a professionalized era dominated by AI-driven scams, stablecoin laundering and efficient cyber syndicates. The past year witnessed a staggering $51 billion in illicit transaction volume — shattering previous records and assumptions.

Initial estimates suggested a decline in crypto crime for 2024. Deeper analysis now suggests otherwise: Criminals have adopted advanced money laundering techniques, hinging on stablecoins, decentralized finance (DeFi) and AI-powered deception, which created the illusion of decreased crime. Gone are the days of lone hackers and shady darknet markets.

The report paints a grim picture of hyper-professionalized cybercrime networks, where fraud cartels, nation-state hackers and AI-powered scams dominate the landscape. Ransomware payments dropped 35% year-over-year (YoY), yet the battle is far from won. Cybercriminals are abandoning Bitcoin (BTC) in favor of stablecoins, Monero (XMR) and DeFi exploits.

Stablecoins are the new kingpin of illicit crypto activity. Bitcoin was the currency of choice for cybercriminals for years, but this changed in 2022. The 2025 Chainalysis report shows a seismic shift to stablecoins that now account for 63% of all illicit crypto transactions.

Criminals are abandoning Bitcoin in favor of stablecoins because they offer speed, liquidity and regulatory blind spots that make illicit transactions easier to execute and harder to trace. Unlike Bitcoin, which can experience longer confirmation times, stablecoins provide near-instantaneous transactions and US dollar-pegged stability.

Yet stablecoin issuers are fighting back. Tether, for instance, has frozen hundreds of addresses tied to illicit activity, forcing criminals to seek alternatives. Some have turned to Monero, privacy wallets and DeFi-based laundering schemes.

Ransomware payments drop 35%, but cybercrime adapts. At first glance, ransomware attacks appear to have declined. In 2024, payments declined by 35%, suggesting that victims and regulators are finally gaining the upper hand.

However, this number masks a deeper transformation. Rather than disappearing, ransomware groups have rebranded, diversified and adapted. Following the takedown of LockBit, smaller ransomware-as-a-service groups like RansomHub have absorbed displaced operators, demonstrating how cybercriminal networks swiftly adapt to enforcement actions.

Another sector of crypto crime continues to thrive in plain sight through simple market manipulation. Decentralized exchanges (DEXs) remain fertile ground for wash trading, where fraudsters orchestrate schemes that inflate trading volumes and deceive investors.

The crypto firm CLS Global just pleaded guilty to wash-trading a token made by the US Federal Bureau of Investigation (FBI) for a cyber sting operation. The 2025 Chainalysis report estimates that $2.57 billion in illicit trading volume was artificially generated in 2024.

The crypto market remains plagued by wash trading, fake volume and pump-and-dump schemes. The battle between regulators and illicit actors will only intensify, shaping the future of crypto’s role in global finance.