"Criminals are using stablecoins"... $154 billion tied to crime last year

Funds linked to cryptocurrency-related crime totaled at least $154 billion over the past year, according to estimates. In particular, criminal groups have begun using price-stable stablecoins—rather than Bitcoin (BTC)—as a primary money-laundering tool, while state-level involvement, including from North Korea, has become more overt.

On the 8th (local time), Chainalysis said in its latest report that "crypto crime has evolved from simple opportunistic behavior into a strategic phase," making the assessment.

The most notable point in the report is the shift in criminal instruments. While Bitcoin’s share—once synonymous with illicit trading on the dark web and elsewhere—has plunged, dollar-pegged stablecoins have moved in to fill the gap.

Chainalysis analyzed this as "a practical choice, not an ideological one," adding that "criminals prefer stablecoins with deep global liquidity to move funds quickly and discreetly, without value fluctuations."

North Korea was identified as the country that carried out the largest amount of cryptocurrency theft last year. The North Korea-linked hacking group Lazarus stole about $2 billion worth of crypto last year. This included the largest-ever hacking incident targeting the cryptocurrency exchange Bybit. North Korea used a method of immediately converting stolen funds into highly liquid stablecoins to launder them.

Russia processed large-scale funds via ruble-linked stablecoins to bypass Western sanctions, while China’s money-laundering rings have corporatized into "full-service platforms" that go beyond simple currency exchange to handle proceeds from scams (fraud) and hacking. Iran, too, actively used coins for oil sales, weapons procurement and support for proxy forces, undermining the sanctions net.

As the value of crypto has grown, offline violent crimes targeting it have also surged. The report said that "hundreds of incidents of physical violence targeting crypto holders—including home invasions, kidnappings and armed threats—have occurred worldwide," adding that "the number of unreported cases is likely far higher."

It added, "Crypto crime is moving beyond the fringes of the financial system and merging with national strategies and organized infrastructure," emphasizing that "a response is now essential not only from financial regulators but also at the level of national security agencies."