Introduction to Stablecoins and Their Role in Crypto Crime
Stablecoins, cryptocurrencies backed by traditional assets, have become the primary vehicle for illicit activities within the crypto ecosystem. According to Chainalysis’ “Crypto Crime Report 2025,” stablecoins accounted for 84% of the total illicit transaction volume in 2025.
Why Stablecoins are Preferred for Illicit Activities
The report highlights that stablecoins’ key attributes, such as price stability, high liquidity, and ease of cross-border transfers, make them particularly attractive for large-scale financial operations. These features enable criminal organizations to conduct sophisticated, transnational activities with relative ease.
Illicit Activity Remains Marginal in the Crypto Market
Despite the growth observed, Chainalysis emphasizes that illicit activity still represents a minor fraction of the overall crypto market. The proportion of illicit transactions within total crypto volume increased slightly compared to 2024 but remains below 1%, indicating that the majority of crypto operations remain legitimate.
Professionalization of Crypto Crime
The report notes that crypto-related crime has become increasingly professionalized over the past few years. Criminal organizations now operate large-scale blockchain infrastructure to support transnational criminal networks, facilitate the acquisition of goods and services, and launder illicitly-obtained assets.
Estimated Illicit Funds Received by Criminal Entities in 2025
Chainalysis estimates that addresses linked to illicit activities received at least $154 billion in 2025, a 162% annual increase, primarily driven by a 694% surge in funds received by sanctioned entities.
Key Questions and Answers
- What are stablecoins? Stablecoins are cryptocurrencies backed by traditional assets, such as fiat currencies or commodities, designed to maintain a stable value.
- Why are stablecoins preferred for illicit activities? Their price stability, high liquidity, and ease of cross-border transfers make stablecoins attractive for large-scale financial operations.
- What percentage of total crypto transactions are illicit? Illicit activity accounts for less than 1% of the total crypto transaction volume.
- How has crypto crime evolved? Crypto-related crime has become more professionalized, with criminal organizations operating large-scale blockchain infrastructure to support transnational activities.
- How much illicit funding was received by criminal entities in 2025? Chainalysis estimates that addresses linked to illicit activities received at least $154 billion in 2025.
