How Stablecoins Became the New Face of Crypto Crime

Stablecoins, once seen as a reliable asset in the crypto market, have become the most-used currency for illicit activities, accounting for 63% of all criminal transactions in 2024, according to Chainalysis’ 2025 Crypto Crime Report.

Their liquidity, ease of use, and ability to bypass traditional banking systems have made them attractive for illegal purposes, particularly in regions facing sanctions. Countries like Russia reportedly utilize stablecoins to navigate banking restrictions and facilitate international transactions, exploiting blockchain’s pseudonymity to conceal fund origins.

Illicit crypto transactions reached $40.9 billion in 2024, with estimates suggesting this figure could climb to $51.3 billion as more activity is uncovered. Stolen funds rose 21% year-over-year to $2.2 billion, with DeFi platforms as the primary targets. North Korean hackers alone accounted for $1.34 billion in theft, showcasing the growing scale of cybercrime. Meanwhile, scams and frauds, including investment schemes and phishing attacks, continued to thrive, leveraging the vulnerabilities in the system.

Crypto crime has evolved into a highly organized industry. Criminal groups now engage in “polycrime,” combining activities like money laundering, drug trafficking, and cyberattacks under a single operation. Facilitators provide critical services, including laundering platforms and hacking tools, enabling these groups to operate at scale. Platforms like Huione Guarantee, which has processed over $70 billion in transactions since 2021, demonstrate how deeply embedded this ecosystem has become.

The rise of stablecoins in illegal activities underscores the need for robust regulations and international cooperation. While blockchain’s transparency offers unique opportunities for oversight, its pseudonymity and global reach create significant challenges. Balancing innovation with security will be crucial as the crypto market matures. Without comprehensive safeguards, the very features that make cryptocurrencies appealing—speed, accessibility, and decentralization—risk becoming tools for exploitation on a global scale.