In 2024, the crypto ecosystem recorded a significant increase in illegal activities, with estimates indicating volumes up to 51 billion dollars. Despite this absolute increase, the percentage of illicit transactions compared to the total volume of cryptocurrencies has decreased, signaling a maturation of the sector.
Growth of illegal crypto activity volumes in 2024
Chainalysis, leader in blockchain analysis, has revealed that, up to December 2024, the volume of illicit transactions amounted to approximately 41 billion dollars.
However, considering the continuous identification of new addresses associated with criminal activities, this figure could increase by an additional 10 billion dollars, reaching 51 billion. This would represent a new record for inflows to illicit actors.
Despite the increase in absolute value, the share of illicit transactions in the total crypto market fell to 0.14% in 2024, compared to 0.61% in 2023. This figure represents the lowest level since 2021, when it was 0.12%.Â
The percentage reduction suggests that, although illicit activities in monetary terms are on the rise, the overall cryptocurrency market is growing at a faster pace, diluting the relative impact of illicit transactions.
Criminal activities involving cryptocurrencies have become more diverse and sophisticated. In addition to traditional money laundering schemes, there has been an increase in practices such as drug trafficking, human trafficking, and wildlife trafficking, facilitated by the anonymity and speed of crypto transactions. Furthermore, scams and ransomware attacks continue to represent a significant portion of illicit activities.
Prevalence of stablecoin and implications for the sector
The stablecoin have taken on a predominant role in illicit transactions, accounting for about 63% of the total volume. Their popularity is attributable to the stability of value and liquidity, which make them preferred instruments for the transfer of illicit funds.Â
However, it is important to note that stablecoins also constitute a significant part of legitimate transactions, representing about 77% of the overall cryptocurrency volume.
The increase in illicit volumes in absolute terms, accompanied by a decrease in their percentage share, indicates a dual trend: on one hand, cryptocurrencies continue to be used for criminal activities; on the other hand, the market is maturing and legitimate transactions are growing at a faster pace.Â
This development suggests that efforts to regulate and monitor the use of cryptocurrencies are having a positive impact, but it also highlights the need for continuous vigilance and more sophisticated tools to combat illicit activities.
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Conclusion
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The year 2024 highlighted significant challenges for the cryptocurrency ecosystem in relation to illicit activities. Although absolute volumes have increased, the decrease in their percentage share of the total market is an encouraging sign.Â
It is essential that the authorities, together with industry operators, continue to collaborate to implement effective measures aimed at further reducing the use of cryptocurrencies for criminal purposes, while ensuring innovation and sustainable growth of the market.