The latest “2025 Crypto Crime” report from Chainalysis has revealed a significant shift in cryptocurrency-related crimes, with stablecoins emerging as the primary target for cybercriminals. Illegal transactions involving stablecoins have surged by 63% in 2024, overtaking Bitcoin, which was historically the most exploited digital asset for illicit activities.

Stablecoins: The New Favorite for Criminals

In 2020, Bitcoin dominated crypto crime due to its liquidity and market dominance. However, by 2024, the landscape has changed drastically. Stablecoins now account for a major share of illicit crypto transactions, mirroring their overall growing role in the crypto economy. According to Chainalysis, stablecoins contribute 77% of total cryptocurrency usage, making them an attractive tool for illicit financial activities such as fraud, money laundering, and unauthorized transactions.

Why Are Stablecoins More Vulnerable?

Several factors contribute to the rise of stablecoin-related crimes:

• Widespread Adoption – Stablecoins are increasingly used for remittances, international trade, and cross-border payments, making them more accessible to criminals.
• Ease of Transfer – Their price stability and liquidity make them convenient for laundering stolen funds.
• Pseudo-Anonymity – While stablecoins operate on transparent blockchains, cybercriminals still find ways to exploit them, often using decentralized finance (DeFi) platforms to obscure transaction trails.

Enforcement Actions and Freezing of Funds

Despite their rising use in cybercrime, stablecoins are not an entirely risk-free tool for criminals. Major issuers like Tether and blockchain networks like TRON have been actively freezing illicit funds. According to the report, these firms, in collaboration with TRM Labs and law enforcement agencies, have frozen over $100 million in criminal assets across five continents.

Tether, in particular, has taken strong measures against addresses involved in scams, terrorist financing, and sanctions evasion, demonstrating that stablecoins can still be traced and blocked, making them less ideal for long-term criminal operations.

Bitcoin Still Dominates Ransomware & Darknet Markets

While stablecoins have become the primary focus of illicit activities, Bitcoin remains the go-to asset for ransomware attacks and darknet market (DNM) transactions. Cybercriminals continue to rely on Bitcoin for these operations due to its higher level of adoption in underground economies and the relative difficulty of freezing BTC wallets compared to centralized stablecoin issuers.