Illicit Crypto Volume in 2024 Hit a Record $40B, According to Chainalysis
Despite being a landmark year for institutional adoption, the cryptocurrency space witnessed a significant increase in illicit transactions in 2024. A report by blockchain security firm Chainalysis revealed that a staggering $40 billion was received by illicit addresses, marking a record high for the year.
The estimate of $40 billion is expected to rise throughout 2025 as more details around historical crimes emerge. This figure represents a significant increase from the previous year's total of $46.1 billion, with Chainalysis anticipating that 2024's total will exceed this amount when all crime is accounted for.
It's worth noting that the report excludes revenue from non-crypto native crime, such as drug trafficking or money laundering, where crypto is used as a means of payment. The approval of spot bitcoin ETFs in 2024 prompted a wave of institutional volume, which has brought down the ratio of crypto crime volume to industry-wide volume. Illicit transactions now account for only 0.14% of all crypto transactions compared to 0.61% in 2023.
Criminals are also changing their habits when it comes to sending illicit funds. In 2021, around 70% of all illicit transactions involved bitcoin (BTC). However, this has now flipped to be dominated by stablecoins, which account for the majority with 63%. Bitcoin now occupies a relatively small portion of illicit transactions, accounting for only 20%. Additionally, privacy coin Monero (XMR) is also a notable inclusion on the list due to its prevalence on dark net markets.
Altcoins account for around 10% of all illicit transactions in total. The shift towards stablecoins and Monero suggests that criminals are becoming more sophisticated in their use of cryptocurrency, making it increasingly difficult to track and prevent illicit activities.
It's also worth noting that the 2025 figures may be skewed to include ether (ETH) due to February's $1.5 billion hack on Bybit, which is the largest single crypto theft to date. As such, investors and regulators should remain vigilant and continue to monitor the situation closely.
About the Author
Oliver Knight is the co-leader of CoinDesk data tokens and data team. Before joining CoinDesk in 2022, Oliver spent three years as the chief reporter at Coin Rivet. He first started investing in bitcoin in 2013 and spent a period of his career working at a market making firm in the UK. Notably, he does not currently have any crypto holdings.