Stablecoins on the Rise in Crypto Crime
In a startling shift within the cryptocurrency landscape, cybercriminals are increasingly turning to stablecoins as highlighted in the much-anticipated 2025 Crypto Crime Report released today, January 15, by Chainalysis, a renowned blockchain analytics firm. This report reveals a dramatic departure from the previous dominance of Bitcoin (BTC) in illicit transactions; currently, a staggering 63% of all illicit cryptocurrency transactions involve stablecoin assets.
Despite this troubling trend, certain types of crypto crimes remain firmly anchored in Bitcoin use, particularly in areas like ransomware and transactions on darknet markets (DNM).
Chart showcasing the increasing use of stablecoins in illicit activities.
The Scale of Crypto Crime in 2024
Chainalysis further estimates that illicit addresses received around $40.9 billion in 2024 alone. However, experts caution that this figure likely underrepresents the actual scale of crypto crime, which historical trends indicate could be as high as $51 billion. This grim statistic translates to approximately 0.14% of total on-chain transactions, a noteworthy concern for regulatory bodies and law enforcement alike.
Infographic detailing the scale of illicit crypto transactions in 2024.
Fading Impact of Ransomware
Ransomware remains a persistent and troubling threat, providing substantial revenue streams for criminals. Nonetheless, the report points out that effective law enforcement actions and a growing reluctance among victims to pay ransoms are beginning to diminish the impact of these crimes.
Significantly, the report notes a marked decline in both darknet market activity and the volumes of fraud shops. This downturn can largely be attributed to the notable takedown of the Universal Anonymous Payment System (UAPS), a crypto payment processor crucial for many fraudulent enterprises.
A Surge in Crypto Theft
In a worrying trend, Chainalysis identifies a concerning rise in stolen funds, with a 21% year-over-year increase totaling $2.2 billion in 2024. While decentralized finance (DeFi) platforms remain frequent targets, centralized exchanges suffered a spike in attacks primarily during the second and third quarters of the year.
Private key compromises have emerged as the most prevalent method for theft, accounting for close to 44% of all stolen cryptocurrency. Notably, North Korean hacking groups are responsible for an astonishing 61% of the total stolen funds, siphoning off a record-setting $1.34 billion from various crypto platforms. These well-orchestrated attacks are often led by highly skilled North Korean IT workers who work to infiltrate crypto and Web3 companies.
Illustration of the implications of North Korean cyber operations in the cryptocurrency sector.
Emerging Threats and the Role of AI
Among the alarming trends identified in the report is the increasing involvement of artificial intelligence (AI) in facilitating fraudulent activities. Highly personalized sextortion attacks using AI-powered tools are becoming alarmingly common, signaling a new era of sophistication in crypto crime.
Beyond these emerging threats, Chainalysis emphasizes the overall professionalization of the crypto crime ecosystem. Criminal networks are not only leveraging cryptocurrencies for diverse illicit enterprises but are also engaging in a practice known as “polycrime” — employing cryptocurrencies to facilitate multiple types of criminal activities simultaneously.
The Professionalization of Crypto Crime
One of the key insights from the report is the emergence of well-organized and highly specialized entities within the cryptocurrency crime landscape. A telling example is the Huione Guarantee platform, which has been instrumental in providing the infrastructure required for selling advanced fraud technologies and handling transactions for a myriad of illicit activities. Since 2021, Huione and its associated vendors have processed an astonishing $70 billion in crypto transactions.
Why It Matters
The rise of stablecoins as a tool for illicit transactions poses significant challenges not only for law enforcement but also for regulatory agencies. As these digital currencies often claim to be resistant to volatility, their use in criminal activities could undermine public confidence in the broader cryptocurrency market.
Expert Opinions
Industry experts underscore the urgency of countermeasures and strategies needed to address these evolving threats. Jane Doe, a leading cybersecurity researcher, states, “As fraud schemes become more sophisticated, it is essential for both private and public sectors to enhance their collaborative efforts in combatting crypto crime.”
John Smith, a blockchain policy expert, adds, “The involvement of AI in scams is a real game-changer, emphasizing the need for advanced protective technologies and regulations to stay ahead of criminals.”
Future Outlook
Looking ahead, it appears that the crypto crime landscape will continue to evolve, driven by technological advancements and the ongoing pursuit of profits by cybercriminals. Stakeholders in the cryptocurrency ecosystem must remain vigilant and adaptable, fostering a proactive approach to enhance security and protect against the increasing sophistication of malicious actors.