Illicit cryptocurrency transactions surged to an estimated $51 billion in 2024, according to blockchain analytics firm Chainalysis. Despite this sharp rise in volume, illicit crypto activities accounted for only 0.14% of the total market, marking the lowest share in three years.

In comparison, illicit crypto activities accounted for 0.61% in 2023, approaching the 2021 low of 0.12%. Chainalysis emphasized that the 2024 figure is a conservative estimate, as ongoing investigations will likely uncover additional illicit addresses and activity.

“2024 was likely a record year for inflows to illicit actors,” the firm stated in a January 15 blog post, noting that historical trends suggest these numbers will increase as more data becomes available.

EXPLORE: 9 Best High-Risk High-Reward Crypto Coins to Buy in 2025

ETFs And Trump’s Election Spark Renewed Optimism

The broader crypto market experienced a revival in 2024, bolstered by favorable developments such as U.S. exchange-traded funds and renewed enthusiasm following Donald Trump’s election. The market’s total value reached a peak of $3.9 trillion in December, contributing to the increased use of digital assets.

Transnational organized crime groups were among the largest beneficiaries of illicit crypto activity, using digital currencies for traditional crimes such as money laundering and trafficking of drugs, humans, and wildlife.

Of the $40.9 billion in illicit crypto volume identified in 2023, $11 billion went to wallets tied to hacking, scams, extortion, and trafficking, Chainalysis revealed.

The Introduction to the 2025 Chainalysis Crypto Crime Report is here! Check out our blog to learn the latest about the on-chain illicit ecosystem’s increasing professionalization, featuring a broadening array of illicit actor organizations. https://t.co/ejjlwHEUm1

— Chainalysis (@chainalysis) January 15, 2025

Stablecoins remained the preferred medium for moving illicit funds, comprising nearly two-thirds of such transactions. However, Chainalysis noted that stablecoins dominate the broader crypto market as well, representing approximately 77% of total transaction volumes.

While the decline in the share of illicit transactions is encouraging, Chainalysis cautioned that these rates could increase as new data emerges.

Historically, the proportion of illicit crypto use has consistently remained below 1%, highlighting ongoing challenges in combating financial crime within the sector.

EXPLORE: 9 Coins with High Returns: Crypto Forecast 2025

Web3 Workers Targeted By Malware Campaign

Last month, cybersecurity firm Cado Security Labs warned that Web3 professionals have become the latest victims of a sophisticated malware campaign that employs fake meeting apps to steal sensitive credentials and crypto assets.

In a report, Cado’s threat research lead, Tara Gould, detailed that scammers are leveraging artificial intelligence (AI) to craft convincing websites and social media profiles that mimic legitimate companies.

The malicious app, initially called “Meeten,” has undergone several rebrands. It now operates as “Meetio” and previously used domains such as Clusee.com, Cuesee, Meeten.gg, and Meetone.gg.

Once downloaded, the app deploys a Realst information stealer to extract sensitive data, including Telegram logins, banking information, and cryptocurrency wallet credentials.

Similar schemes have surfaced recently. In August, on-chain investigator ZackXBT identified 21 developers, likely linked to North Korea, using fake identities to infiltrate crypto projects.

Additionally, in September, the FBI warned of North Korean hackers targeting crypto firms and decentralized finance (DeFi) projects with malware disguised as job offers.

EXPLORE: $300 Million Exploit: Japan’s DMM Bitcoin Exchange Suffers Largest Hack Of 2024

The post Illicit Crypto Use Hits $51 Billion In 2024 But Shrinks To Three-Year Low In Market Share appeared first on 99Bitcoins.