Crypto fraud has surged significantly, with high-risk addresses on Ethereum and TRON networks receiving over $278 billion in 2024. This represents a growing trend in illicit activities, amidst a booming cryptocurrency market. A total of $649 billion in stablecoin transactions were processed by high-risk addresses. However, money laundering activities showed signs of a slight decline due to increasing regulatory measures.
As crypto fraud escalates, Bitrace has reported that high-risk addresses on the Ethereum and TRON networks amassed a staggering $278 billion in just 2024. This surge in illicit activity has highlighted the precarious intersection between a growing cryptocurrency market and criminal enterprises effectively leveraging this infrastructure for nefarious purposes. It’s worth mentioning that high-risk addresses collectively processed stablecoin transactions worth around $649 billion, a notable increase from the previous year.
The specifics, as indicated in the 2025 Crypto Crime Report, show that the overwhelming majority of illicit activities concentrate on Ethereum and TRON. Particularly, these risky blockchain addresses linked to grey and black markets received just over $278 billion last year. That marks a slight uptick from 2023 and significantly eclipses prior years’ figures from 2021 and 2022, signalling a troubling trend in the crypto landscape.
Bitrace’s report pointed out specific stablecoin variants that facilitate these shady transactions, including popular tokens like ERC20-USDT and TRC20-USDT. The sheer volume of stablecoins flowing into high-risk addresses was substantial, with a reported inflow of $649 billion, which is only marginally higher than the previous year, yet still alarming.
Moreover, despite the large volume of illicit activities, high-risk transactions accounted for about 5.14% of the entire stablecoin market in 2024, which, interestingly, represents a slight decrease compared to 2023. Still, this figure remains much more concerning when looking back at 2021 and 2022.
Digging deeper, it appears that TRON-based USDT has been the primary stablecoin linked to these activities since 2021. However, in 2024 there was a noticeable increase in the use of Ethereum’s USDT and USDC, which suggests changing preferences among those involved in illicit activities.
Escrow services have been in the spotlight as they are increasingly exploited for illegal transactions. The report indicated that these platforms facilitated an eye-watering $2.64 billion in transactions during the last quarter of 2024, underscoring the increasing demand for stablecoins in illicit economies, specifically cited in Southeast Asia.
On the gambling front, too, things are not looking rosy. The report estimates that online gambling platforms processed around $217.8 billion worth of transactions last year, an increase of 17.5% from 2023. Notably, USDC’s share of stablecoin transactions in this sector leapt up to 13.36% from just 5.22% previously—a surprising trend for a stablecoin from a reputable issuer like Circle.
In a rather alarming statistic from the report, blockchain addresses associated with fraudulent activities saw a massive rise in 2024, with total stablecoin inflows reaching $52.5 billion, exceeding past years combined. That said, it’s crucial to note that these increasing numbers may not fully represent reality, as ongoing improvements in detection might simply be uncovering crimes that were previously hidden.
Interestingly, the report does highlight some progress in combating money laundering, showing a slight decline with $86.3 billion linked to such activities—down from the previous year and the same as 2022. This could hint that the regulatory measures put in place are starting to have some traction.
In conjunction with these developments, stablecoin issuers like Tether and Circle have stepped up their efforts, freezing $1.3 billion worth of stablecoins on Ethereum and TRON last year—double the amount frozen in the past three years altogether. This surge in enforcement is, in part, attributed to evolving regulations, particularly noteworthy in Hong Kong, which saw reduced risky inflows since late 2023.
It’s essential to understand the crypto landscape better. The number of tokens created is dictated by respective developers, who define how many can be mined or issued. Market capitalisation is calculated based on the asset’s total supply multiplied by its current market value.
In terms of trading volume, it indicates how many tokens have been exchanged within a specific timeframe, reflecting market sentiment. And, talking about funding rates, they act as encouragements for traders to ensure that contract prices align with spot market prices. Positive funding means bullish traders pay their bearish counterparts and vice versa.
Notably, everything in the financial ecosystem comes with risks and uncertainties. The cryptocurrency market is no different, inviting both seasoned and new investors to thoroughly research before making any decisions. This landscape is as dynamic as ever, and it’s crucial for everyone involved to stay informed.
Overall, one thing is clear: as the crypto realm evolves, so too do the complexities of fraud within it.
