As more nations consider building cryptocurrency reserves, new data from Chainalysis suggests they may already be within reach of vast on-chain holdings that could strengthen those ambitions.
According to the firm’s latest research, wallets connected to illicit activity hold over $75 billion in digital assets – around $15 billion directly tied to criminal entities and another $60 billion circulating in wallets with indirect exposure.
Hidden Wealth on Public Blockchains
The majority of this crypto is in Bitcoin, which accounts for roughly three-quarters of the total, while stablecoins are gaining ground among illicit users. Darknet markets remain a dominant force, collectively controlling about $40 billion worth of funds.
Because these assets sit on transparent blockchains, analysts argue that much of it could, at least theoretically, be recovered or repurposed by governments through coordinated action.
From Enforcement to Reserves
The report coincides with U.S. efforts to establish a Strategic Bitcoin Reserve and Digital Asset Stockpile, initiatives designed to expand federal crypto holdings without increasing spending. Chainalysis said this landscape offers “an unprecedented opportunity” for law enforcement, as billions in traceable crypto could be seized.
Co-founder Jonathan Levin noted that the potential scale of recoverable assets could “change how countries think about digital finance and asset recovery.”
A Small Slice of a Big Market
Despite the large dollar figures, illegal activity represents a tiny share of overall crypto use. Chainalysis found that only 0.14% of blockchain transactions in 2024 were illicit, compared to the 2%–5% of global GDP the UN attributes to money laundering in traditional finance.
Experts say blockchain’s transparency makes such activity easier to spot, not more frequent. The visibility of every transaction amplifies reports of crypto crime – but it also gives regulators a clearer path toward reclaiming digital wealth once thought untouchable.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.