TECH NEWS | Crypto market saw over $121B worth of illicit transactions in a decade

Although illicit crypto activity significantly dropped in 2023, falling by almost 40% year-over-year, the volume of these transactions was still a massive $24.2 billion, pushing the ten-year total to shocking highs.

According to data presented by AltIndex.com, the crypto market saw more than $121 billion worth of illicit transactions in the past decade.

Nearly Half of All Illicit Crypto Transactions Were Made in 2022 and 2023

As the entire crypto space snowballed over the past decade, so did the crypto illicit activity. According to the Chainalysis Cyber Crime report, the total volume of crypto transactions tied to stolen funds, scams, ransomware, human trafficking, terrorism financing, and dark net markets has skyrocketed by a shocking 3,800% in this period.

Between 2013 and 2015, the crypto space saw around one billion dollars worth of illicit transactions yearly. In 2107, this figure rose above the one billion mark for the first time, reaching $1.7 billion, and then doubled to $3.5 billion a year later. The negative trend continued in the following years. After reaching $4.6 billion in 2018, illicit transactions in the crypto space skyrocketed to $12.5 billion in 2019, which is still nothing compared to figures reported in the following years.

After falling to $9.4 billion in 2020, crypto illicit transactions surged to $23.2 billion in 2021. However, illegal activity continued rising and hit almost $40 billion in 2022, the highest value the crypto space has ever seen. Although this figure dropped by 38% in 2023, a year in which the crypto industry recovered from scandals, blowups, and price declines, the total volume of illicit transactions was still a massive $24.2 billion, practically the same as the cumulative value reported between 2013 and 2019.

Furthermore, with over $24 billion worth of new illicit transactions in 2023, their ten-year total skyrocketed to a shocking $121.5 billion. The Chainalysis data also showed that practically half of this value was reported in 2022 and 2023, making them the worst years for crypto illicit activity.

Although the total volume of illegal crypto activity in the past decade is shocking, the latest figures showing illicit share in total crypto transaction volume still bring hope. Seven years ago, they made up 0.86% of all transactions in the crypto space. Statistics show this share dropped to only 0.34% last year, similar to the figure reported in 2018.

The Chainalysis Cyber Crime report also revealed significant changes regarding cryptocurrencies used in illicit transactions and the types of scams. Although Bitcoin was traditionally the preferred choice among cybercriminals, that changed over the past two years. Stablecoins now account for most illicit transaction volume, marking a significant shift in the cybercrime landscape.

Regarding the type of cybercrime, statistics show crypto scamming and hacking revenue dropped significantly in 2023, falling by 29.2% and 54.3%, respectively. On the other hand, ransomware and darknet markets saw their revenues rise last year, in contrast to the overall drop in crypto illicit activity.

The full story and statistics can be found here: altindex.com/news/crypto-market-illicit-transactions

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