Crypto crime in 2024 likely exceeded $51B, far higher than reported: Chainalysis

Crypto crime has entered a professionalized era dominated by AI-driven scams, stablecoin laundering and efficient cyber syndicates, the 2025 “ Crypto Crime Report ” by Chainalysis reveals, with the past year witnessing a staggering $51 billion in illicit transaction volume — shattering previous records and assumptions.

Initial estimates suggested a decline in crypto crime for 2024. Deeper analysis now suggests otherwise: Criminals have adopted advanced money laundering techniques, hinging on stablecoins, decentralized finance (DeFi) and AI-powered deception, which created the illusion of decreased crime.

Gone are the days of lone hackers and shady darknet markets. The report paints a grim picture of hyper-professionalized cybercrime networks, where fraud cartels, nation-state hackers and AI-powered scams dominate the landscape.

Ransomware payments dropped 35% year-over-year (YoY), yet the battle is far from won. Cybercriminals are abandoning Bitcoin

Stablecoins are the new kingpin of illicit crypto activity

Bitcoin was the currency of choice for cybercriminals for years, but this changed in 2022. The 2025 Chainalysis report shows a seismic shift to stablecoins that now account for 63% of all illicit crypto transactions.

Criminals are abandoning Bitcoin in favor of stablecoins because they offer speed, liquidity and regulatory blind spots that make illicit transactions easier to execute and harder to trace. Unlike Bitcoin, which can experience longer confirmation times, stablecoins provide near-instantaneous transactions and US dollar-pegged stability.

This makes stablecoins ideal for laundering large sums of money without worrying about price fluctuations and makes tracking transactions harder due to faster shifts through mixers, crosschain bridges and DeFi protocols to obscure transaction origins and evade detection. This pivot shows a growing preference for more efficient financial tools in the evolving landscape of crypto crime.

Yet stablecoin issuers are fighting back. Tether, for instance, has frozen hundreds of addresses tied to illicit activity, forcing criminals to seek alternatives. Some have turned to Monero, privacy wallets and DeFi-based laundering schemes.

Ransomware payments drop 35%, but cybercrime adapts

At first glance, ransomware attacks appear to have declined. In 2024, payments declined by 35%, suggesting that victims and regulators are finally gaining the upper hand. However, this number masks a deeper transformation.

Rather than disappearing, ransomware groups have rebranded, diversified and adapted. Following the takedown of LockBit , smaller ransomware-as-a-service groups like RansomHub have absorbed displaced operators, demonstrating how cybercriminal networks swiftly adapt to enforcement actions.

Another sector of crypto crime continues to thrive in plain sight through simple market manipulation. Decentralized exchanges (DEXs) remain fertile ground for wash trading, where fraudsters orchestrate schemes that inflate trading volumes and deceive investors. The crypto firm CLS Global just pleaded guilty to wash-trading a token made by the US Federal Bureau of Investigation (FBI) for a cyber sting operation.

Related: In pictures: Bybit’s record-breaking $1.4B hack

These methods rely on creating an illusion of demand, often through automated trading bots that rapidly buy and sell tokens to inflate prices artificially. This fabricated activity tricks new investors into believing a project has real momentum. A fast-growing green candle and seemingly organic volume draw in new investors with the promise of quick gains.

Once enough unsuspecting buyers enter the market, insiders dump their holdings, crashing the price and leaving retail investors holding worthless tokens. This cycle, known as the classic “pump-and-dump,” continues to plague DEXs, undermining trust in crypto markets.

In 2024, 3.59% of all new tokens minted displayed classic rug-pull behavior.

Looking ahead at cat-and-mouse crypto crime

Chainalysis’s 135-page report also covers the rise of laundering-as-a-service platforms, the decline of darknet market revenues, and the growing role of AI in crypto scams. It examines how North Korean hackers stole a record $1.34 billion, the fall of major ransomware groups like LockBit and the SEC’s crackdown on $2.57 billion in market manipulation schemes. The report shows the evolution of crime and the escalating global response with detailed case studies and forensic insights.

There is a cat-and-mouse game with regulators and criminals locked in an escalating arms race. Stablecoin regulations are expected to tighten as governments respond to their growing role in money laundering.

At the same time, AI-powered fraud will expand exponentially, with deepfake scams, synthetic identities and automated phishing attacks becoming harder to detect. Ransomware tactics will continue to evolve, shifting focus from ransom payments to data theft and extortion.

Cybercriminals will find new ways to pressure victims, and as law enforcement steps up its efforts, the battle between regulators and illicit actors will only intensify, shaping the future of crypto’s role in global finance.

Magazine: Elon Musk’s plan to run government on blockchain faces uphill battle