As highlighted in a recent report, 2024 marked a pivotal moment for the broader crypto industry with rising prices and notable shifts in regulation with unprecedented growth in both market capitalization and infrastructure adoption for digital assets.
However, this expansion came with a notable increase in the exploitation of crypto infrastructure by criminal enterprises, as highlighted in Bitrace’s recent 2025 Crypto Crime Report.
Ethereum And TRON Networks Dominate ‘High-Risk Activities’
As the report details, criminal activities within the crypto space are increasingly concentrated on Ethereum (ETH) and TRON networks. Bitrace identified blockchain addresses associated with illegal entities that receive, transfer, and store stablecoins—specifically ERC20_USDT, ERC20_USDC, TRC20_USDT, and TRC20_USDC—as high-risk.
In 2024, these addresses collectively received approximately $649 billion, slightly surpassing the previous year’s figures. Despite a decrease in the share of high-risk transactions to 5.14% of total stablecoin transactions—a drop of 0.80% from 2023—this level remains significantly higher than in 2021 and 2022.
Another significant aspect of the crypto crime report by Bitrace is the rise of online gambling platforms, which processed $217.8 billion in 2024, reflecting a 17.5% increase from the previous year.
Notably, Circle’s USDC stablecoin’s share in this sector rose sharply to 13.36%, indicating that even compliant stablecoin issuers are finding traction in industries often linked to illicit activities.
The report also highlights a worrying trend in fraud-related activities, which saw an explosive increase in stablecoin inflows, reaching $52.5 billion in 2024—an amount that surpasses total inflows from previous years combined.
Per the report, this surge may not fully capture the reality of the situation, as improving detection capabilities and evolving fraud tactics contribute to the increasing visibility of such crimes.
Stablecoin Issuers Step Up
In addition to fraud, money laundering remained a critical concern, with addresses linked to these activities receiving $86.3 billion in stablecoins in 2024.
While this figure is slightly lower than in 2023, it suggests that previous enforcement actions and regulatory initiatives have had some effect on curbing money laundering practices within the crypto sector.
The role of escrow services in facilitating illicit trade is also underscored in the report, with platforms like Huione Guarantee gaining popularity among criminals. The transaction volume for these services soared to $2.64 billion by the fourth quarter of 2024, further complicating the regulatory landscape.
On a more positive note, the report indicates that stablecoin issuers are increasingly cooperating with law enforcement, with Tether and Circle freezing over $1.3 billion worth of stablecoins in response to illicit activities.
The collaboration between regulatory bodies, such as the US Office of Foreign Assets Control (OFAC) and Israel’s National Bureau for Counter-Terror Financing, remains crucial in the fight against crypto-related terrorist financing.
However, the report emphasizes that while sanctions can disrupt targeted entities, the decentralized nature of crypto provides criminal organizations with a degree of resilience that makes complete eradication challenging.
Featured image from DALL-E, chart from TradingView.com
