Chainalysis says organised crime is using crypto for illicit activities
Rise in crypto crime a concern
With cryptocurrency adoption rising globally, recent data shows a disturbing surge in crypto crime. According to Chainalysis’ 2024 Crypto Crime Report, illicit addresses received approximately $40.9 billion in 2024. This figure is expected to grow to $51 billion as further criminal activity is uncovered.
Despite this alarming statistic, criminal transactions still represent a fraction of the crypto ecosystem, just 0.14% of the total on-chain transaction value. However, the trend toward more sophisticated and diversified criminal activity remains concerning.
Eric Jardine, Cybercrimes Research Lead at Chainalysis, emphasised that organised crime groups, including transnational networks, are increasingly turning to cryptocurrency for illicit activities like drug trafficking, money laundering, human and wildlife trafficking, gambling, and even violent crime. Some criminal networks are also engaging in “polychrome”—using crypto to conduct a variety of crimes simultaneously.
Of the $40.9 billion received by illicit addresses in 2024, $10.8 billion is linked to “illicit-actor organisations,” which include hackers, scammers, and those providing criminal services such as laundering-as-a-service.
A worrying development for the UAE, where cryptocurrency is rapidly gaining traction, is the shift away from Bitcoin (BTC) and Ether (ETH). For the third year running, stablecoins now dominate illicit crypto transactions, accounting for 63% of such volume. 51% of crypto activity in the UAE is tied to stablecoins, well above BTC (19%) and ETH (9%).
As the UAE crypto market grows, the Central Bank of the UAE introduced the Payment Token Services Regulation to provide more oversight. Additionally, the launch of the AE Coin, the Arabian Gulf state’s first regulated AED-pegged stablecoin, has garnered interest from local and global stakeholders. However, the rise in crypto crime raises concerns about the safety of investments in the space.
Arushi Goel, Policy Lead at Chainalysis for the Middle East and Africa, warned that crypto criminals could undermine trust in the sector unless stakeholders, including virtual asset service providers, regulatory bodies, and law enforcement agencies, implement strong safeguards.
Image: Some criminal networks are engaging in “polychrome”—using crypto to conduct a variety of crimes simultaneously. Credit: Sebastiaan Stam
