Key Points
- Illicit crypto transactions fell to 0.4% of the total volume in 2024, with sanctions being the largest category at 33%.
- TRON was the top blockchain for illicit transactions in 2024, with Ethereum and Bitcoin following.
Blockchain transactions experienced a significant increase in 2024, reaching a total of $10.6 trillion. This was a 56% jump from the previous year. In contrast, illicit transactions saw a 24% drop, now accounting for just 0.4% of the total volume.
Analysis of Illicit Transactions
According to a report by TRM Labs, sanctions-related transactions formed the largest share of illicit crypto activity. They accounted for 33% of the total, followed by blocklisted funds at 29%, and scams and fraud at 24%.
The firm anticipates that these numbers may increase as more data is analyzed. For instance, initial estimates for 2023’s illicit transactions were $34.8 billion, but this was later revised to $58.7 billion. The estimate for 2022 also saw an increase from $49.6 billion to $56.6 billion.
Comparative Data
Chainalysis, another blockchain analytics firm, reported that illicit crypto volume in 2024 was nearly $41 billion. However, they noted that this figure could increase by another $10 billion as more illicit addresses are discovered.
TRM Labs stated that TRON had the highest percentage of illicit transactions in 2024, at 58%. This was followed by Ethereum (24%) and Bitcoin (12%). Despite this, TRON also saw the largest decrease in illicit activity, with a $6 billion drop.
Efforts Against Illicit Transactions
In a notable operation, Spanish authorities and the T3 Financial Crime Unit froze over $26 million in crypto linked to a money laundering ring operating across Europe. This was made possible by the T3 FCU — a team backed by TRON, Tether, and TRM Labs — which worked with Spain’s Guardia Civil to track down the crypto addresses tied to the group. This operation marked the T3 FCU’s biggest asset freeze since its inception in 2024.
So far, the team has assisted authorities in seizing more than $126 million in illicit crypto across five continents. Tether CEO Paolo Ardoino praised the operation as a “testament to the power of blockchain” in combating crime.
