Cybercriminals are increasingly turning to stablecoins, according to the 2025 Crypto Crime Report released today, on Jan. 15, by Chainalysis, a blockchain analytics firm.
The report shows a clear shift away from Bitcoin (BTC), which previously dominated the cryptocurrency landscape for criminal activity. Now, 63% of all illicit cryptocurrency transactions involve stablecoin assets.
However, some forms of crypto crime, such as ransomware and darknet market (DNM) sales, still remain Bitcoin-dominated.
While the rise of stablecoins in illicit activities is concerning, Chainalysis analysts highlighted in the report that stablecoin issuers often actively combat their misuse.
For example, Tether (USDT) has a track record of freezing addresses associated with scams, terrorist financing, and sanctions evasion, making stablecoins a less attractive option for some illicit actors.
Scale of Crypto Crime in 2024
Chainalysys also estimates that $40.9 billion was received by illicit addresses in 2024.
However, this figure likely underestimates the true scale of crypto crime, with historical trends suggesting the actual figure may be closer to $51 billion. This represents approximately 0.14% of total on-chain transaction volume.
Ransomware remains a persistent threat, generating substantial revenue for criminals. However, a combination of law enforcement actions and a decline in victim willingness to pay ransoms has somewhat tempered their impact, according to the report.
The report also highlights a significant decline in darknet market activity and fraud shop volumes. A major factor contributing to this decrease was the successful law enforcement takedown of Universal Anonymous Payment System (UAPS), a crypto payment processor utilized by numerous fraud shops.
Crypto Theft Surged 21% in 2024
Chainalysys confirms in its report a concerning rise in stolen funds, with a 21% year-over-year increase to $2.2 billion. While decentralized finance (DeFi) services have been frequent targets, centralized exchanges experienced a surge in attacks during the second and third quarters of 2024.
Private key compromises were the most common method of theft, accounting for almost 44% of all stolen crypto.
North Korean hacking groups represent 61% of the total stolen funds, siphoning off a record-breaking $1.34 billion from crypto platforms. These attacks often involve sophisticated tactics, techniques, and procedures employed by North Korean IT workers who have infiltrated crypto and Web3 companies, compromising their internal networks.
The USA, Japan and South Korea released a joint statement, detailing North Korea-linked crypto thefts and their targeted entities.#NorthKorea #CryptoThefts #LazarusGrouphttps://t.co/uTkzpYvnTe
— Cryptonews.com (@cryptonews) January 15, 2025
New Threats in the Crypto Crime Landscape
Chainalysis also highlighted another disturbing trend: the increasing use of artificial intelligence (AI) in fraudulent activities. Highly personalized sextortion attacks enabled by AI-powered tools are becoming more common, as per the report.
Beyond these specific trends, the report emphasizes the increasing sophistication and professionalization of the crypto crime ecosystem. Criminal networks are increasingly leveraging cryptocurrencies for a wide range of illicit activities and even engaging in “polycrime,” utilizing cryptocurrencies to facilitate multiple crime types simultaneously.
Finally, the report underscores the emergence of highly organized and professionalized entities within the crypto crime landscape.
As an example of the professionalization of the cryptocrime ecosystem, Chainalysis cites the Huione Guarantee platform, which has provided infrastructure for the sale of fraud technology and handled transactions for a wide range of illicit activities.
Since 2021, Huione and all vendors operating on their platform have processed more than $70 billion in crypto transactions.
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