Crypto Criminals Pocket Almost $51bn In 2024

While this places 2024 on track to be the second most prolific year for crypto crimes, the report by Chainalysis said the amount, though massive in absolute terms, remains just a minute share of the larger crypto ecosystem, accounting for just 0.14 per cent of the year’s total on-chain transaction value.

Besides, there has been a steady diversification in crypto crimes away from bitcoin (BTC), with stablecoins now occupying the majority – 63 per cent – of all illicit transaction volume, according to Chainalysis’ annual Crypto Crime report released on Wednesday.

“As global cryptocurrency utilisation continues to rise, evidenced most recently in the post-US election bull run, so too does the ever-present shadow of crypto crime,” the report said.

The blockchain data leader said its estimates of $40.9 billion will rise to $51 billion as it continues to refine its analysis.

What Chainalysis experts noted as being concerning, however, is the ongoing diversification and professionalisation of crypto crime.

“An increasing number of illicit actors, including transnational organised crime groups, are exploiting cryptocurrency to conduct a range of traditional criminal activities, such as drug trafficking, gambling, intellectual property theft, money laundering, human and wildlife trafficking, and violent crime.

“Notably, some criminal networks are turning to cryptocurrency to enable “polycrime” – engaging in multiple forms of criminal activity,” said Eric Jardine, Cybercrimes Research Lead at Chainalysis.

This trend is evidenced in the fact that of the $40.9 billion received by illicit addresses in 2024, $10.8 billion can be attributed to “illicit-actor organisations”, a category Chainalysis defines to encompass wallets linked to individuals and services directly involved in cybercrime, including hacking, extortion, trafficking, and scams, as well as those facilitating these crimes by offering infrastructure, tools, and services such as laundering-as-a-service.

The report said following the introduction of the landmark Payment Token Services Regulation by the Central Bank of the UAE (CBUAE) in July last year, another particularly concerning development for the UAE’s rapidly advancing crypto community is the fact that for a third year in succession, Chainalysis has observed a steady diversification away from BTC, with stablecoins now occupying the majority (63 per cent) of all illicit transaction volume.

“Stablecoins currently account for the largest share of crypto activity in the UAE (51 per cent), standing significantly higher than both bitcoin (19 per cent) and Ether (9 per cent), which are typically considered to be the most recognised and popular cryptocurrencies,” the report said.

“The UAE’s crypto community, including global stakeholders, is closely monitoring and actively engaging with the central bank’s stablecoin regime,” it said.

Chainalysis said ecosystem stakeholders, including VASPs, regulatory and supervisory authorities, as well as law enforcement agencies, must collaborate to implement robust safeguards against cryptocrimes, which not only protect the users, but also reinforce trust in the UAE’s burgeoning digital asset ecosystem.

“This would ensure that innovation in the crypto space is matched by resilience against evolving threats,” said Arushi Goel, Policy Lead – Middle East and Africa at Chainalysis.