Illicit Crypto Activity Expected to Surpass $51 Billion in 2024

A recent report by Chainalysis reveals that illicit crypto volumes for 2024 are expected to exceed $51 billion, with $40.9 billion already identified. Historical trends suggest that the total volume may increase as more wallet addresses are linked to criminal activity.

Annual Growth Rate in Illicit Activity

The report highlights a 25% annual growth rate in illicit activity between reporting periods since 2020, indicating a steady increase in crypto crime. The professionalization of the crypto crime ecosystem is also on the rise, with large-scale on-chain services emerging to support money laundering and other illicit activities.

A notable example is Huione Guarantee, an online marketplace offering laundering-as-a-service. The group recently launched its own stablecoin, USDH, to evade regulatory scrutiny.

Stablecoins Dominate Illicit Activity

According to the report, stablecoins now account for 63% of all illicit transaction volume. This dominance reflects broader trends in crypto usage, with stablecoins widely adopted for legitimate purposes such as remittances and cross-border payments.

However, ransomware attacks, stolen funds, and scams remain prevalent. North Korean hackers were responsible for $1.34 billion of the $2.2 billion in stolen crypto this year, primarily through private key compromises. Scams have also become more sophisticated, incorporating AI-driven tactics such as personalized sextortion schemes.

Law Enforcement Efforts and the Future of Illicit Activity

While darknet market activity and fraud shop volumes declined, ransomware groups continued to earn hundreds of millions. Law enforcement efforts, including the takedown of the Universal Anonymous Payment System, have disrupted several operations but have not eliminated their presence.

Despite a drop in the percentage of illicit activity relative to total on-chain volume—down to 0.14% in 2024—experts believe these figures will rise as data attribution improves.

“$40.9 billion received by illicit addresses known today, but we estimate the total may be closer to $51 billion given historical trends.”

Tips for Investors and Crypto Users

To stay safe in the crypto market, follow these tips:

  • Be cautious of scams and phishing attempts that may compromise your private keys.
  • Use reputable exchanges and wallets to minimize the risk of theft.
  • Stay informed about regulatory changes and law enforcement efforts to combat illicit activity.

Stay up-to-date with the latest news and trends in the crypto market by following Global Crypto News.

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