Illegal Crypto Activity: Potential $51 Billion in 2024
According to a recent report by Chainalysis, illicit cryptocurrency transactions could reach as high as $51 billion in 2024. This figure represents an increase from the $46.1 billion recorded in 2023. The report also emphasizes that this is just an estimate, and the final figure may increase as further information comes to light.
It is important to remember that this figure does not include money obtained from non-crypto based crimes, such as drug trafficking or money laundering.
Crime-to-Industry Ratio Decline
Despite the potential increase in the total value of illegal transactions, the ratio of crime volume to overall industry volume has fallen significantly. In 2023, this ratio stood at 0.61%. However, with the introduction of multiple spot Exchange-Traded Funds (ETFs) in 2024, numerous large institutions and investors have entered the market. This influx of capital has increased the overall cryptocurrency industry volume, reducing the crime-to-industry ratio to 0.14%.
Shift to Stablecoins
Chainalysis’s report also notes a shift in the preferred cryptocurrency of cybercriminals. Bitcoin, once the dominant cryptocurrency for illicit activities, is losing ground to stablecoins, whose value is pegged to fiat currency. Four years ago, about 70% of criminal transactions were made in Bitcoin. This figure dropped to around 20% last year.
Simultaneously, stablecoins, which offer more price stability than standard cryptocurrencies, have become much more popular among criminals and now account for about 63% of all funds moved.
In a smaller number of cases, about 10%, Monero was exploited. Monero is a privacy-oriented coin known for its use in cryptojacking, where hackers covertly use a victim’s computer to mine the currency.
These findings suggest a complex and dynamic landscape of cryptocurrency-related crime, where criminals are adapting their methods and strategies in response to changing market conditions and technological developments.
