According to a recent report by Chainalysis, stablecoins account 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 been a huge source of income for many, it has also been a honeypot for hackers and scammers. There has been over 60% in total losses in the crypto market in the last four years attributed to hacks.
Asides from this, the cryptocurrency industry has also been a “crowbar” in the hands of the criminals. Hackers have had a field day according to multiple reports. 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 2024 saw a drop in value in funds received by illegal wallets 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 with more illegal addresses appearing on the radar. Interestingly, in 2023, an earlier report stated that the numbers were pegged at $24.2 billion. After a year, the estimated number rose to $46.1 billion when a large number of illegal entities were discovered.
The report also states that given historical trends, the current number in 2024 might soar in the coming months. This estimates to a total of $51 billion. Stolen funds increased by about 21% YoY to $21 billion. A large share was obtained from the DeFi sector. However, the centralized sector were easier targets 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.
READ MORE: South Korea Announces Plans To Introduce New Crypto Law in 2025
