Cybercriminals ditch Bitcoin for stablecoins as illicit trades potentially surpassed $51 billion in 2024 – Chainalysis
Chainalysis, a blockchain analytics company, estimates that illicit crypto transactions will exceed $51 billion by 2024. This is a significant increase over previous estimates, due to the underreporting.
The findings of the latest Crypto Crime Report from the company indicate an increase in AI fraud, stablecoin money laundering and sophisticated cybercrime.
Although initial projections suggested a decrease in crypto-related crimes, a deeper analysis revealed that the criminals had adapted to regulatory scrutiny and shifted away from Bitcoin (BTC), in favor of privacy-focused assets such as stablecoins.
The report also revealed a growing use of automated deception platforms and DeFi to conceal illicit transactions.
Criminals prefer to use stablecoins
Bitcoin is no longer the currency of choice for illicit transactions. Its share in cryptocrime has shrunk.
Chainalysis reports that stablecoins accounted for 63% of illegal crypto transactions in 2018. This is the third year in a row they have outperformed Bitcoin.
Stablecoins, unlike Bitcoin, offer transactions almost instantaneously with minimal price fluctuations.
They are now used by criminals as a tool to launder large amounts of money through mixers, cross-chain bridges and decentralized platforms. This allows them to quickly move funds and avoid detection.
Tether and other major stablecoins have tried to clamp down on illegal activity by freezing wallets that are linked to cybercrime. Criminals have now turned to other options, such as privacy-focused cryptocurrencies, like Monero. They also use self-custodial Wallets and DeFi-based schemes for laundering.
Cybercrime and Market Manipulation
Report also showed a 35% decrease in ransomware payouts from year to year. Chainalysis discovered that while this initial result appeared to indicate progress in the fight against cyber extortion.
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 are increasingly focusing on data theft and extortion. They target high-value institutions, threatening to leak sensitive information instead of demanding ransom.
Chainalysis discovered that, beyond direct financial crimes in the crypto world, market manipulation schemes are still a major problem. DEXs became hubs for fraudulent traders who artificially inflate the trading volume to mislead their investors.
In 2024, the report estimates that wash trading and market manipulating will be responsible for 2,57 billion dollars in illicit trading. 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 a high-profile case, the crypto firm CLS Global admitted to washing trading a secretly created token by the FBI as part of an undercover 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 outlined how North Korean hackers stole $1,34 billion in a record-breaking theft last year. It highlighted the challenges that regulators and law enforcers face.
Stablecoins are expected to play a greater role in money laundering. Regulatory scrutiny will increase. 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.
Experts warn that as cybercriminals adapt to new enforcement measures, the battle between regulators, illicit actors, and financial crime will only intensify, affecting the future of digital asset oversight and financial crime.
