Sanctions remain dominant at 33% of illicit crypto flows in 2024, analysts say

Sanctions remain the top illicit crypto category at 33% of illicit volume, as overall blockchain transactions surged to $10.6 trillion in 2024.

Crypto transactions jumped 56% in 2024 to $10.6 trillion, while illicit activity fell 24% to $45 billion, now just 0.4% of total volume, down from 0.9% in 2023, TRM Labs reports.

In a Feb. 18 blog post, the blockchain forensic firm said sanctions-linked transactions made up the largest share of illicit crypto activity, accounting for 33% of the total. Blocklisted funds followed at 29%, with scams and fraud at 24%.

The analysts expect the illicit volume figures to rise over time as more data is analyzed. In early 2024, the firm estimated illicit transactions for 2023 at $34.8 billion. However, that number has now been revised up to $58.7 billion, a 69% increase. Similarly, 2022’s estimate was raised from $49.6 billion to $56.6 billion.

For comparison, another blockchain analytics firm Chainalysis reported in January that illicit crypto volume in 2024 hit nearly $41 billion. However, the firm noted that the figure could rise by another $10 billion as more shady addresses are uncovered.

“We consider our estimate as the minimum, or ‘floor,’ for the volume of illicit cryptocurrency, and expect figures to increase over time with delayed attribution and reporting.”

TRM Labs

TRON remains the top blockchain in terms of illicit transactions in 2024 at 58%, the analysts say, adding that the network is followed by Ethereum (24%) and Bitcoin (12%). While it might seem that bad actors are increasingly using TRON allegedly due to its small fee, the network also saw the biggest drop in illicit activity, with a $6 billion decline.

As crypto.news reported earlier, Spanish authorities and the T3 Financial Crime Unit froze over $26 million in crypto linked to a money laundering ring operating across Europe. The crackdown was made possible by T3 FCU — a team backed by TRON, Tether, and TRM Labs — which worked with Spain’s Guardia Civil to track down the crypto addresses tied to the group. Officials say the organization moved millions, converting cash into crypto for illicit use.

That operation marked T3 FCU’s biggest asset freeze since launching in 2024. So far, the team has helped authorities seize more than $126 million in illicit crypto across five continents. Tether CEO Paolo Ardoino called the effort a “testament to the power of blockchain” in fighting crime, adding that “those who attempt to misuse Tether will get caught.”