The cryptocurrency market experienced tremendous growth, surpassing a transaction volume of $10.6 trillion. However, there was a notable decline in illicit activities associated with cryptocurrencies in 2024, with the estimated volume of such transactions falling to $45 billion, representing a 24% decrease from the previous year. This decline signifies that illicit transactions made up only 0.4% of the total crypto flows.
A report from TRM Labs highlighted several key trends regarding crypto-related crime. Although ransomware attacks hit an all-time high, North Korean cybercriminals were identified as significant perpetrators, allegedly siphoning nearly $800 million in stolen funds. Financial grooming scams also contributed to billions in losses, indicating an ongoing challenge in mitigating financial fraud in this expanding sector.
The tracking of illicit crypto volumes is complex. In 2023, the initially estimated volume of illicit transactions was pegged at $34.8 billion, but it underwent a substantial revision to $58.7 billion. Should 2024 demonstrate a similar trajectory, a final estimate could potentially exceed $75 billion, underscoring the persistent difficulty in accurately assessing crypto crime in real time.
TRON emerged as a primary blockchain choice for illicit actors, accounting for 58% of criminal crypto flows. However, it simultaneously experienced a significant decline, with illicit transactions dropping by $6 billion. The reduction was largely attributed to stringent enforcement measures, which included the freezing of over $130 million in illicit assets through dedicated financial crime units. Furthermore, nearly half of TRON’s illicit transactions were linked to sanctioned entities, highlighting its association with blacklisted funds.
Sanctioned entities continued to dominate illicit crypto flows, although their contribution decreased by 33%, totaling $14.8 billion. Notably, two well-known crypto exchanges—Garantex, operating in Russia, and Nobitex in Iran—were responsible for over 85% of these illicit transactions.
In response to growing illegal activity, authorities in the United States and allied nations implemented more rigorous enforcement, blacklisting a total of 86 cryptocurrency addresses that were connected to cybercriminal groups, ransomware operators, and other illicit exchanges.
Interestingly, despite increasing interest in privacy-centric cryptocurrencies such as Monero, organizations involved in terrorist financing predominantly relied on stablecoins in 2024. These groups utilized USDT and similar stablecoins due to their liquidity and ease of transaction, showing a preference over more private alternatives.
Ransomware emerged as one of the fastest-growing categories of crypto crime, with attackers executing 5,635 publicly reported incidents in 2024—an increase from the previous record of 5,223 attacks in 2023. Overall, hacks and exploits in the crypto sector led to $2.2 billion being stolen, reflecting a 17% increase from the previous year, with decentralized finance (DeFi) protocols being particularly vulnerable; the average amount stolen per hack was around $14 million.
Within the context of these thefts, North Korean hacking efforts stood out remarkably. These actors were responsible for the theft of nearly $800 million, constituting 35% of all stolen assets, highlighting the sophisticated nature of their operations, which often target critical security elements like private keys and seed phrases.
On the other hand, while losses related to fraud decreased by 40% year-over-year, amounting to $10.7 billion, they remained significant within the overall context of crypto crime. Scams categorized as “pig butchering,” in which fraudsters lead victims to make fake investments, were reported to have resulted in losses of at least $2.5 billion, marking a 58% decline from the previous year.
The evolving landscape of cryptocurrency crime reflects ongoing challenges in both enforcement and technology, as both illicit actors and regulatory bodies adapt to a dynamic environment.