Illicit Transaction Volume
In 2024, the volume of illicit cryptocurrency transactions fell to approximately $45 billion, a 24% decline from 2023. However, analysts caution that this figure may rise as ongoing investigations uncover additional activity, TRM labs says in its 2025 rypto crime report. Sanctioned entities accounted for 33% of illicit crypto volume, surpassing scams, fraud, and blocklisted addresses.
Key Threats
1. Ransomware Surges
- 5,635 publicly reported attacks occurred in 2024, a record high.
- Threat actors increasingly used cross-chain bridges to obscure ransom payments.
- Case Study: LockBit, a ransomware group, employed developers like Rostislav Panev, who allegedly received Bitcoin payments for creating tools to automate ransom demands.
2. Terrorist Financing
- Groups leveraged unhosted wallets, mixers, and privacy coins (e.g., Monero) to evade detection.
- Operational security tactics have complicated counter-terrorism efforts, particularly in tracing funds.
3. Hacks and Theft
- $2.2 billion was stolen in crypto-related hacks, a 17% YoY increase.
- North Korean-linked groups (e.g., Lazarus) stole $800 million, primarily via private key compromises.
4. Money Laundering Innovations
- Mixers and tumblers: Services like those used in the Silk Road case fragmented transactional links.
- Layering: Schemes like PlusToken distributed illicit funds across multiple accounts and jurisdictions to evade tracking.
- Professionalized infrastructure: Platforms like Huione Guarantee processed over $70 billion in crypto transactions since 2021, aiding scams, fraud, and sanctions evasion.
Regulatory and Enforcement Challenges
- Pseudonymity: Blockchain transparency alone cannot resolve identity gaps, enabling criminal exploitation.
- Cross-jurisdictional complexity: Inconsistent regulations hinder asset recovery, as seen in the Colonial Pipeline ransom case.
- Emerging tools: Criminals increasingly adopt privacy-enhancing technologies and decentralized marketplaces.
Notable Cases
- Silk Road 2.0: Continued use of Bitcoin and mixers for darknet transactions.
- PlusToken Scam: Laundered millions via layered transactions across exchanges.
- Huione Guarantee: A crypto service platform facilitating scams, sanctioned entities, and illegal gambling.
These trends underscore the need for enhanced international collaboration, advanced blockchain analytics, and updated regulatory frameworks to combat evolving crypto-related financial crimes.
