Chainalysis: Stablecoins Surpass Bitcoin in Illicit Crypto Activity
Stablecoins, cryptocurrencies pegged to the value of traditional assets like the U.S. dollar, have overtaken Bitcoin as the most used cryptocurrency for illicit transactions, according to a new report by blockchain analytics firm Chainalysis. The firm's 2025 Crypto Crime Report reveals that stablecoins accounted for a significant 63% of all illicit crypto transaction volume in 2024, reflecting a broader shift in how criminals are utilizing digital assets.
Stablecoins now make up the majority of illicit crypto transactions, accounting for 63% of the total volume, according to Chainalysis.
A Growing Problem: Illicit Crypto Volumes on the Rise
Chainalysis projects that illicit cryptocurrency volumes will reach an estimated $51.3 billion in 2024, with on-chain criminal activities becoming increasingly diverse. While the initially reported figure for illicit activity was $40.9 billion, Chainalysis anticipates this number to rise as they identify more illicit addresses and incorporate historical data.
Since 2022, stablecoins have surpassed Bitcoin in illicit use. "This new reality is part of a broader ecosystem trend in which stablecoins also occupy a sizable percentage of all crypto activity, demonstrated by total growth YoY in stablecoin activity around 77%," the report noted. This highlights that the use of stablecoins overall has grown significantly, not just their use in illicit activity.
Stolen Funds and the Rise of Private Key Compromises
The report also highlights a roughly 21% year-over-year increase in stolen funds, totaling $2.2 billion in 2024. Decentralized finance (DeFi) services were a major source of these stolen funds, while centralized services were the most targeted in the second and third quarters of the year.
Private key compromises were a significant factor, accounting for 43.8% of stolen crypto. Notably, North Korean hackers are estimated to have stolen a record $1.34 billion last year, according to the report.
Scams Continue to Plague the Crypto Space
Chainalysis also observed that both high-tech and low-tech scams were prevalent in 2024. High-yield investment scams and "pig butchering" schemes, which involve building trust with victims before convincing them to invest in fraudulent schemes, were among the most successful.
The Evolving Landscape of Crypto Crime
The findings from Chainalysis's report underscore the evolving landscape of crypto-related crime. While the overall volume of illicit activity remains a concern, the shift towards stablecoins presents new challenges for law enforcement and regulators. As the crypto ecosystem continues to mature, addressing these emerging trends will be crucial for fostering a safer and more secure environment for legitimate users and businesses.