TRM Labs: Illicit Crypto Activity Falls to 0.4% Despite Record Volume

Published: 2025-06-21 23:46:37 |

TRM Labs’ 2024 crypto crime report finds illicit crypto activity at just 0.4% of total volume, a 51% drop from 2023, even as overall transaction volume surged 56% to $10.6 trillion. Estimated illegal flows fell to $45 billion. Sanction evaders, scammers and blocklisted addresses made up 85% of illicit volume, primarily on Tron, Ethereum and Bitcoin. Tron accounted for 58% of criminal flows, but its illicit volume halved thanks to the T3 Financial Crime Unit freezing over $130 million in USDT and returning nearly 20% to victims. Targeted sanctions cut inflows to restricted jurisdictions by 33%. Emerging threats include terrorism financing via stablecoins, a 17% rise in DeFi hacks totaling $2.2 billion—$800 million traced to North Korean groups—and the growing use of AI for personalized scams, deepfakes and KYC fraud. TRM warns of expanding AI-powered crypto crime in 2025.

Neutral

Although the drop in illicit crypto activity and improved controls on Tron and USDT suggest stronger compliance and reduced risk, the rise in DeFi hacks and AI-powered scams poses new threats. Traders may see neutral market impact: regulatory pressure eases, but emerging risks require caution. Historically, lower crime rates have supported stable price growth, while novel threats can trigger short-term volatility.