Chainalysis: 2024 was a record year for the volume of illegal cryptocurrency turnover

At the same time, the share of illegal digital assets in the total market volume dropped to a three-year low

16.01.2025 - 09:30

527

3 min

What’s new? According to experts of the analytical blockchain platform Chainalysis, in 2024, the volume of illegal cryptocurrency turnover amounted to almost $41 billion. It is noted that the figure could grow by another $10 billion as more addresses associated with illegal activity are identified.

Chainalysis report

What else is known?

“2024 was likely a record year for inflows to illicit actors as these figures are lower-bound estimates based on inflows to the illicit addresses we’ve identified up to today. A year from now, these totals will be higher as we identify more illicit addresses and incorporate their historic activity into our estimates,” the analysts write.

Although last year was a record year in absolute terms, the share of illegal cryptocurrency use compared to the entire market fell to the lowest level in the previous three years.

In 2024, for example, it fell to 0,14%, the lowest level since 2021 (0,12%). By comparison, the rate was 0,61% in 2023. Chainalysis expects the share of illicit cryptocurrencies to increase, but historically it has consistently remained below 1%.

JPMorgan: SOL and XRP-based funds could outperform ETH ETFs in the first six months after the launch

The market is awaiting the approval of new exchange-traded crypto products after the new Trump administration takes office

Chainalysis said that transnational organized crime groups are increasingly using cryptocurrency to commit “traditional” crimes such as money laundering, as well as human, wildlife, and drug trafficking.

According to the company, nearly $11 billion of the total illicit cryptocurrency ($40,9 billion) last year was generated by wallets involved in “hacking, extortion, trafficking, or scams” and those who sold the services needed to commit such crimes.

EAG member states have reported the growing popularity of cryptocurrencies for the legalization of criminal proceeds

Following monitoring, the group reported that money laundering is taking place in multi-layered schemes involving drops

Stablecoins remain the most popular cryptocurrencies for transferring illicit funds, accounting for nearly two-thirds of the total. However, Chainalysis emphasized that stablecoins also account for the majority of the broader cryptocurrency turnover volume, about 77%.

Author: