Illicit Cryptocurrency Traders Exchanged an Estimated $649 Billion Worth of Stablecoins in the Previous Year
A Huge Uptick in Stablecoins' Role in Crypto Crimes
Get ready for the lowdown on the latest crypto crime report by Bitrace—and it ain't pretty. They're reporting a whopping $649 billion in stablecoins moved to high-risk addresses, a stark increase from previous years. And guess what? Though the criminal sector has grown, the legitimate sector's expansion has been even swifter.
The report spotlights more than just stablecoins. It delves into gambling, darknet markets… you name it. And the action against stablecoin money laundering hasn't been slack either, with Tether and Circle freezing over a billion bucks in assets last year alone.
Stablecoins and Illicit Activities - A Looming Concern?
Stablecoins are a crucial player in the global crypto scene, but they're also a sought-after tool for the criminal underworld. Take, for instance, crypto investigator ZachXBT who recently alleged that North Korean hackers are "epidemically" active in this space.
Now, Bitrace's 2024 Crime Report sheds light on shady dealings all over the crypto industry, but it puts a magnifying glass on stablecoins specifically.
In 2024, about 5.14% of global stablecoin transactions were linked to high-risk addresses. While that's a decrease from 5.94% the year before, the total value of these transactions increased. In other words, the stablecoin sector is expanding faster than its role in crypto crime.
Tether is the heavyweight champion in this ring, making up the bulk of these transactions due to its popularity. Tron and Ethereum are the leading blockchains for Tether stablecoins, with Tron accounting for over 75% and Ethereum's share growing.
Bitrace’s Crypto Crime Report didn't limit its focus to the stablecoin world. It also tackled illegal trade on the darknet, which surged by more than $30 billion, thanks to vendors adopting DeFi to dodge law enforcement. Crypto gambling is on the rise too, climbing 17.5% to $217.84 billion.
Yet, the industry isn't just a passive bystander. Scams and frauds exploded last year, skyrocketing from $12 billion to $52 billion. Platforms like Huione—involved in cross-border scams—have come under scrutiny, and Tether has been working to freeze its wallets to limit their impact.
In short, stablecoins are a thriving component of crypto's dark side, but the pushback is gaining steam. If the industry maintains its focus on combating fraud and money laundering, it could make a huge difference. The legitimate uses of stablecoins far outweigh this shady sector, and the bad guys' market share is shrinking.
Here's Where to Stash Your Stablecoins
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- The Bitrace 2024 Crime Report reveals that stablecoins have become a significant tool for criminals, with $649 billion in stablecoins moved to high-risk addresses.
- Despite the increasing role of stablecoins in illicit activities, the legitimate sector's expansion has been even faster.
- The report sheds light on various aspects of the crypto industry, including gambling and darknet markets, but emphasizes the concern around stablecoins.
- In 2024, about 5.14% of global stablecoin transactions were linked to high-risk addresses, showing a decrease from the year before, but with an increase in the total value of these transactions.
- Tether is the leading stablecoin in this sector, with Tron and Ethereum being the leading blockchains for Tether stablecoins, with Tron accounting for over 75% and Ethereum's share growing.
- The report also addresses illegal trade on the darknet, which has surged due to vendors adopting DeFi to dodge law enforcement, and the rise in crypto gambling.
- Scams and frauds exploded last year, skyrocketing from $12 billion to $52 billion, with platforms like Huione under scrutiny for their involvement in cross-border scams.
- To combat fraud and money laundering, industry players such as Tether are taking action, freezing billions of dollars in assets and limiting the impact of criminal activities.
