In 2023, more than $24.2 billion worth of crypto was involved in illicit transactions, with stablecoins accounting for the majority of illegal activity as cybercriminals began looking for more reliable assets for their activities.
According to Chainalysis, stablecoins made up the majority of the volume of illegal transactions in 2023. They accounted for over 60% of all illegal crypto transactions.
Analysts reported that a shift of cybercriminals to using stablecoins for illegal transactions was observed for the second year in a row. In 2022, stablecoins also represented more than 60% of all transactions. In 2021, this figure was no more than 25%, and in 2020, it didn’t exceed 10%.
The latest UN report revealed that cryptocurrencies, specifically the USDT stablecoin, are widely used in the shadow economy of Southeast Asian countries.
Meanwhile, Chainalysis data showed that the total number of cryptocurrencies involved in illegal operations last year decreased substantially. $24.2 billion in digital assets were involved in illicit transactions in 2023, down 39% from a year earlier and only 4% more than the same figures for 2021.
Besides the drop in the number of cryptocurrencies coming from crypto addresses linked to cybercrime, the volume of crypto transactions engaged in criminal activities also decreased. In 2023, only 0.34% of crypto transactions were linked to illegal transactions. At the same time, the same indicator in 2022 was 0.42%, and in 2021 — only 0.14% of the total volume of transactions in the crypto market.
Chainalysis analysts also highlighted three key cybercrime trends for 2023:
- A 29.2% and 54.3% decline in illicit fraud and hacking revenues, respectively.
- Increased cybercriminal activity in the DarkNet and ransomware market.
- About $14.9 billion of illegal transactions accounted for sanctioned entities and jurisdictions in 2023.
Analysts pointed out that the data presented is preliminary and subject to change as new addresses involved in illicit activity are identified. The full report on the use of crypto for criminal purposes in 2023 will be published by Chainalysis in February.
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