According to a recent report by Chainalysis, stablecoins accounted for over 63% of illegal crypto transactions in the last year.
“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 stated.
In recent years, cryptocurrency has become a global sensation, with the total cryptocurrency market cap pegged at $3.44 trillion. While it has become a source of income for many, it has also been a honeypot for hackers and scammers. Over the last four years, a significant proportion (over 60%) of cryptocurrency market losses resulted from hacking incidents.
In addition, the cryptocurrency industry has also been a “crowbar” in the hands of criminals. According to multiple reports, hackers have had a field day. Money launderers have used crypto as a funnel, with some operating off-chain and moving funds to the blockchain for laundering.
Illegal Activities Over the Years
Chainalysis reported that funds received by illegal wallets dropped in value in 2024 compared to 2023, with the former recording $46.1 billion and the latter about $40.9 billion. However, these numbers are touted to rise in 2025 as more illegal addresses appear on the radar.
Interestingly, an earlier report in 2023 stated that the numbers were pegged at $24.2 billion. After a year, the estimated number rose to $46.1 billion because of the detection of many illegal entities.
Stolen funds increased by about 21% YoY to $2.2 billion. A large share was obtained from the DeFi sector. However, the centralized sector was an easier target later on in the year. The report also accounted for the most funds stolen from crypto platforms, about $1.34 billion, representing over 60% of the total amount stolen that year.
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