Last year saw threat actors engaging in scams, hacks, and frauds to amass a staggering $41 billion from unsuspecting victims, a figure that is expected to surpass $51 billion in the near future, as per findings by Chainalysis.
The blockchain analysis firm delved into illicit on-chain activities in 2024, focusing on specific categories like stolen funds, darknet markets, and ransomware, rather than non-crypto-native crimes such as drug trafficking.
While the initial estimate for 2024 shows a lower amount of funds received by illicit cryptocurrency addresses compared to the previous year, Chainalysis anticipates a 25% increase once more addresses linked to criminal activities are identified.
The bulk of the illicit funds were associated with categories like “illicit actor-org,” “scam,” “darknet market,” “stolen funds,” “sanctioned jurisdiction,” and “sanctioned entity.”
Bitcoin, once a favorite among cybercriminals, has seen a decline in popularity in recent years. In 2024, 63% of illicit activity was linked to stablecoins. However, Bitcoin still reigns supreme in certain types of crypto-related crimes like ransomware and darknet market sales. It’s worth noting that Chainalysis’ Crypto Crime Report does not cover the leading privacy coin, Monero, which is favored by cybercriminals.
In a notable incident, stolen funds surged by 21% annually to reach $2.2 billion, with North Korea accounting for a significant portion of $1.3 billion (61%) of the total stolen amount.
Scammers continued their illicit activities unabated in 2024, while ransomware actors raked in hundreds of millions of dollars. Darknet markets received $2 billion, slightly lower than the previous year, and illicit flows from fraud shops decreased by over half to $220 million.
The report highlighted that various illicit actors, including transnational organized crime groups, are increasingly turning to cryptocurrency for traditional crime types such as drug trafficking, gambling, money laundering, and more. Some criminal networks are even using crypto to facilitate multiple crime types, a phenomenon known as polycrime.
Despite the prevalence of illicit activities, it’s important to note that the vast majority of cryptocurrency transactions are legitimate. The report emphasized that historically, the volume of crypto transactions associated with illicit activities has never exceeded 1%, with the figure for 2024 standing at 0.14%.
As the world of cryptocurrency continues to evolve, it’s crucial for users to remain vigilant and stay informed about potential risks associated with digital assets. By understanding the landscape of crypto-related crimes, individuals and organizations can better protect themselves from falling victim to malicious actors in the digital realm.