🌎 Crypto Crime Surges with Stablecoins as Preferred Choice

Crypto-Related Crime on the Rise, with Stablecoins Becoming the Preferred Choice

According to recent data, illicit crypto transactions are expected to surpass the record set in 2023, with criminals shifting their focus from Bitcoin to stablecoins for laundering stolen funds. Last year, crypto-related criminal transactions totaled $40 billion, with the estimated total expected to rise above $51.3 billion as more data is collected.

This rise in illicit transactions can be attributed to various crypto scams, digital asset fraud, and ransomware attacks. Despite the increase in overall illicit transactions, the ratio of these transactions relative to legitimate activity has decreased, thanks to growing institutional adoption.

Shift from Bitcoin to Stablecoins

In 2021, Bitcoin accounted for a staggering 70% of criminal transactions. However, the tide has turned, and stablecoins now dominate, comprising 63% of illicit transaction volume. Meanwhile, only 20% of illegal funds are now laundered through the Bitcoin network.

Other notable trends include the use of privacy coin Monero (XMR) by dark web vendors and users, and the involvement of altcoins in 10% of illegal transactions.

Institutional Adoption Drives Legitimate Crypto Volume

On the other hand, legitimate crypto volume has surged, driven by institutional adoption from Wall Street. The launch of spot exchange-traded funds based on Bitcoin and Ethereum has significantly 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. Tips for investors looking to stay safe in the crypto market include: