This article discusses 2024 trends in cryptocurrency crime, indicating key areas of concern such as a diversified range of illicit activities, an estimated $40.9 billion received by illicit addresses, and an increased use of stablecoins for transactions. Key highlights include a 21% increase in stolen funds, a decrease in darknet market revenues, and the professionalisation of crime through platforms like Huione.
The landscape of cryptocurrency crime continues to evolve as the market gains mainstream traction. This report outlines key developments in crypto crime trends for 2024, highlighting a significant diversification of illicit activities. Although historically associated with cybercrime, the use of cryptocurrency now extends to various forms of organised crime, requiring sophisticated infrastructures for illicit operations. Moreover, funds are increasingly being laundered through on-chain services.
In 2024, illicit cryptocurrency addresses reportedly received $40.9 billion, down from previous highs, yet this figure reflects only the identified addresses. An estimate suggests that the total could approach $51 billion when incorporating historical growth trends and untracked illicit addresses. The increase in identified illicit activity, including funds stolen in hacks, reinforces the perception that crime involving cryptocurrency is on the rise.
There exists a differentiation in how we measure illicit activity; for example, funds from non-crypto-native crimes are excluded unless validated by law enforcement. Thus, while our metrics reflect a lower percentage of illicit transactions at 0.14% of total on-chain volume, these figures may evolve as further evidence comes to light. Certain activities, such as market manipulation or funds tied to fraud cases without convictions, remain difficult to quantify.
Key trends in crypto crime for 2024 have highlighted several areas of concern. Stolen funds saw an increase of 21% YoY, reaching $2.2 billion, primarily attributed to DeFi service breaches. Fraud continues to proliferate, leveraging AI to execute schemes such as personalised scams, while ransomware remains a lucrative, albeit challenged, sector. The ongoing law enforcement cooperation has curtailed ransomware abundance, yet demand for payments persists.
Darknet markets experienced a slight decline, generating $2 billion, as fraud shop volumes significantly reduced due to enforcement actions. The rise of professionalised crime organisations exploiting cryptocurrencies for diverse criminal activities suggests a shifting paradigm in the illicit ecosystem. Crypto infrastructure services, like Huione, have facilitated scams and laundering services, evidencing this growing market complexity.
Overall, the data from 2024 reflects both an increase in illicit activity and a marked professionalisation within the crypto crime landscape. The interplay between evolving technologies and criminal methodologies necessitates ongoing vigilance and advancement in detection methods to combat these emerging threats effectively.
In conclusion, while illicit transactions evidence a decline in specific metrics, the underlying infrastructure supporting these crimes is becoming increasingly sophisticated, requiring innovative approaches to regulation and enforcement within the cryptocurrency space.
