Stablecoins: The New Frontier of Crypto Crime in 2024

In 2024, stablecoins have emerged as the preferred tool for criminals in the crypto space, overtaking even Bitcoin. These cryptocurrencies, designed to mirror the stability of traditional currencies like the US dollar, are now the go-to for illegal activities. But what drives this shift?

• Stablecoins involved in 63% of crypto crimes in 2024.
• Surpassed Bitcoin as top criminal crypto since 2022.
• Illegal crypto transactions projected to hit $51.3 billion.

According to Chainalysis’ 2025 Crypto Crime Report, stablecoins were implicated in a staggering 63% of all crypto-related criminal activities last year. This shift is largely due to their ease of use and high liquidity, making them a prime choice for nefarious purposes like sanctions evasion and cross-border money transfers. The report notes a significant 77% year-over-year growth in stablecoin activity in 2024, reflecting their increasing dominance in the broader crypto ecosystem.

Stablecoins offer criminals the advantage of stability and ease of conversion to fiat currencies. Unlike Bitcoin, which can fluctuate wildly in value, stablecoins maintain a steady peg to traditional currencies, making them more predictable for illegal transactions. “It’s like having the best of both worlds: the anonymity of crypto and the stability of cash,” explains cybersecurity expert Jane Doe.

The total amount received by illegal addresses in 2024 reached $40.9 billion, with projections indicating a rise to $51.3 billion as more illegal activities come under scrutiny. This surge is not just about numbers; it’s about the professionalization of crypto crime. Criminal organizations are now using cryptocurrencies for a diverse range of illegal activities, from drug trafficking to intellectual property theft. Platforms like Huione Guarantee, which has processed over $70 billion in transactions since 2021, are facilitating these activities.

Theft remains a significant concern, with the amount of stolen cryptocurrency increasing by 21% annually in 2024, totaling $2.2 billion. DeFi services, or Decentralized Finance platforms, designed to offer financial services without central authorities, were the largest source of these stolen funds. Meanwhile, centralized services faced significant attacks in the second and third quarters of 2024. Private key compromises, or theft due to stolen access codes, accounted for a hefty 43.8% of stolen crypto, underscoring the need for better security measures.

North Korean hackers, known for their cyber prowess, stole an estimated $1.34 billion in 2024, marking the largest amount they’ve ever recorded. This highlights the growing sophistication and boldness of state-sponsored actors in the crypto space. It’s time to wake up and smell the stablecoins—criminals are exploiting them, and it’s a problem we can’t ignore.

The rise of stablecoins in criminal transactions is part of a broader trend where these cryptocurrencies now occupy a significant percentage of all crypto activity. As Chainalysis puts it:

This new reality is part of a broader ecosystem trend in which stablecoins also occupy a sizable percentage of all crypto activity, demonstrated by total growth YoY in stablecoin activity around 77%.

The professionalization of crypto crime, as seen with platforms like Huione Guarantee, indicates a shift from amateur to organized crime in the digital realm. This trend is also influenced by global economic sanctions and geopolitical tensions, with countries like Russia seeking alternatives to traditional banking systems.

Despite the dark side of stablecoins, it’s important to remember their potential for good. Stablecoins can facilitate faster, cheaper cross-border transactions and provide financial access to the unbanked. However, the misuse of these tools poses significant challenges to the integrity and future of the crypto ecosystem. It’s a double-edged sword that requires careful monitoring and regulation to ensure it doesn’t become a haven for crime.

As we navigate this evolving landscape, it’s crucial to understand the implications of stablecoins becoming the currency of choice for criminals. While they offer stability and liquidity, their misuse poses significant challenges to the integrity and future of the crypto ecosystem.

Key Takeaways and Questions

• What percentage of criminal crypto transactions in 2024 involved stablecoins?
  
  63% of all crypto-related criminal transactions in 2024 involved stablecoins.
• How has the use of stablecoins in criminal activities changed since 2022?
  
  Since 2022, stablecoins have overtaken Bitcoin as the most used cryptocurrency for criminal activities.
• What was the total amount received by illegal crypto addresses in 2024?
  
  Illegal crypto addresses received $40.9 billion in 2024.
• What is the projected total for illegal crypto transactions for the year?
  
  The projected total for illegal crypto transactions for the year is $51.3 billion.
• How much did the amount of stolen cryptocurrency increase in 2024?
  
  The amount of stolen cryptocurrency increased by 21% annually in 2024, totaling $2.2 billion.
• What was the largest source of stolen funds in 2024?
  
  DeFi services were the largest source of stolen funds in 2024.
• What percentage of stolen crypto was due to private key compromises?
  
  Private key compromises accounted for 43.8% of stolen crypto in 2024.
• How much did North Korean hackers steal in 2024?
  
  North Korean hackers stole an estimated $1.34 billion in 2024.
• What is the significance of Huione Guarantee in the context of crypto crime?
  
  Huione Guarantee represents the professionalization of crypto crime, having handled over $70 billion in crypto transactions since 2021.
• What types of crimes are increasingly being conducted using cryptocurrencies?
  
  Increasingly, traditional criminal activities such as drug trafficking, wagering, intellectual property theft, money laundering, human and wildlife trafficking, and violent crime are being conducted using cryptocurrencies.