Cybercriminals ditch Bitcoin for stablecoins as illicit trades potentially surpassed $51 billion in 2024 – Chainalysis

Chainalysis' analysis reveals stablecoins account for 63% of illicit crypto transactions as criminals evade detection using privacy assets and DeFi platforms.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Illicit crypto transactions exceeded $51 billion in 2024, significantly higher than previous estimates due to underreporting, according to blockchain analytics firm Chainalysis.

The findings, published in the company’s latest Crypto Crime Report, indicate a surge in AI-driven fraud, stablecoin laundering, and sophisticated cybercrime networks.

Despite initial projections suggesting a decline in crypto-related crime, deeper analysis revealed that criminals have adapted to regulatory scrutiny, shifting away from Bitcoin (BTC) in favor of stablecoins and privacy-focused assets.

The report also highlighted a growing reliance on automated deception and DeFi platforms to obscure illicit transactions.

Criminals prefer stablecoins

Once the dominant currency in illicit transactions, Bitcoin now accounts for a shrinking share of crypto crime.

Chainalysis reported that stablecoins were involved in 63% of illicit crypto transactions last year, marking the third consecutive year they have surpassed Bitcoin in this role.

Unlike Bitcoin, which has relatively slower confirmation times and high volatility, stablecoins offer near-instant transactions with minimal price fluctuations.

This has made them a preferred tool for laundering large sums through cross-chain bridges, mixers, and decentralized platforms, allowing criminals to rapidly shift funds and evade detection.

Major stablecoin issuers, such as Tether, have attempted to crack down on illicit activity by freezing wallets linked to cybercrime. However, criminals have turned to alternatives, including privacy-focused cryptocurrencies like Monero, self-custodial wallets, and DeFi-based laundering schemes.

Cybercrime and market manipulation

The report also noted a 35% drop in ransomware payments year-over-year. While this initially appeared to signal progress in combating cyber extortion, Chainalysis found that ransomware operators had instead diversified their tactics.

Following the takedown of the LockBit ransomware group, smaller cybercrime syndicates have filled the gap, and ransomware-as-a-service operations have become more decentralized.

Cybercriminals have increasingly focused on data theft and extortion, targeting high-value institutions with threats to leak sensitive information rather than solely demanding ransom payments.

Beyond direct financial crimes, Chainalysis found that market manipulation schemes remain a significant problem in the crypto space. DEXs have become hubs for wash trading, where fraudulent traders artificially inflate trading volumes to mislead investors.

The report estimated that $2.57 billion in illicit trading volume in 2024 was linked to wash trading and market manipulation. Fraudsters have used automated bots to create the illusion of demand, driving up token prices before executing classic “pump-and-dump” schemes that leave unsuspecting investors with worthless assets.

In one high-profile case, crypto firm CLS Global pleaded guilty to wash trading a token that the FBI secretly created as part of a sting operation.

Arms Race

Chainalysis’ 135-page report also explored the broader trends in crypto crime, including laundering-as-a-service platforms, the decline of darknet markets, and the growing role of AI in financial fraud.

The study detailed how North Korean hackers stole a record $1.34 billion last year, highlighting the persistent challenges facing regulators and law enforcement.

With stablecoins playing an increasing role in money laundering, regulatory scrutiny is expected to intensify. Meanwhile, the use of AI-powered fraud — including deepfake scams and synthetic identity theft — is expected to expand, making it even more difficult to track illicit financial activity.

As cybercriminals continue to adapt to enforcement measures, experts warn that the battle between regulators and illicit actors will only escalate, shaping the future of financial crime and digital asset oversight.

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