649 billion dollars involved in illicit activities in 2024

A recent report published by Bitrace, a company specializing in crypto compliance, revealed an alarming figure: in 2024, about 649 billion dollars in stablecoin were transferred through high-risk blockchain addresses, meaning linked to illicit activities.

This figure represents 5.14% of the total volume of transactions in stablecoin recorded in 2024. Although slightly down from 5.94% in 2023, the figure is still significantly higher compared to previous years: 2.8% in 2022 and 1.63% in 2021. 

A trend that, although slightly declining, continues to raise concern among experts in the sector.

What is meant by “indirizzi ad alto rischio” in the phenomenon of stablecoin of 2024?

According to Bitrace, high-risk addresses are those used by entità illegali to receive, move, or store stablecoins. 

Compliance companies, like Bitrace itself, classify these addresses based on the probability of involvement in illicit activities. The higher the risk associated with an address, the lower the chance it will be accepted by regulated crypto platforms.

This classification is fundamental for companies operating in the sector, as it allows for the identification and isolation of potential threats to financial security and the legality of transactions.

The report highlights how the stablecoin USDt, issued by Tether, is the most used in high-risk transactions. 

In particular, the Tron network confirms itself as the dominant platform for these movements, with over 70% of the total volume of suspicious transactions carried out precisely on this blockchain.

The remaining transactions are mainly distributed between USDt on Ethereum and a small percentage of USDC. 

The predominance of USDt can be explained by its high market capitalization and widespread adoption compared to other stablecoins. According to CoinMarketCap data, USDt boasts a capitalization of over 148 billion dollars, while USDC stops at around 62 billion.

The prevalence of the Tron network in high-risk transactions, however, raises questions. 

Despite Ethereum still being the most used blockchain for stablecoins, with approximately 124.3 billion dollars in circulation according to DefiLlama, Tron follows with 71 billion, which is almost 43% less.

However, when analyzing the distribution of USDt, Tron holds a slightly higher share compared to Ethereum: 47.4% versus 45.44%.

This imbalance could indicate a preference of illicit actors for Tron, perhaps due to reasons related to lower fees, transaction speed, or less traceability.

The boom of gambling in cryptocurrencies

Another significant data point that emerged from the report concerns the use of stablecoins in online gambling. 

In 2024, gambling platforms processed transactions totaling 217.8 billion dollars, marking an increase of 17.5% compared to the previous year.

Even in this sector, USDt dominates the scene, but it is interesting to note the growth of the market share of USDC, which has reached 13.36%. 

This increase could indicate a greater confidence of users towards USDC or a diversification of preferences among gaming platforms.

The boom of crypto gambling occurs despite the continuous efforts of the regulatory authorities to limit access to these platforms.

According to another recent study, cryptographic casinos generated over 81 billion dollars in revenue in 2024, demonstrating remarkable resilience even in the presence of regulatory restrictions.

This phenomenon raises further concerns, as gambling platforms often represent a privileged channel for money laundering and other illicit activities, exploiting the anonymity and speed of transactions in stablecoin.

Future prospects and challenges for the sector

The Bitrace report provides a detailed and concerning insight into the use of stablecoins in high-risk contexts. 

Despite a slight percentage decrease compared to the previous year, the absolute volume of suspicious transactions remains high, indicating the need for greater controls and monitoring tools.

The growing adoption of cryptocurrencies, combined with their decentralized nature, makes it difficult for the authorities to intervene effectively. 

However, initiatives like the collaboration between Tether and Tron for the creation of a unit against financial crime represent a step in the right direction.

The cryptocurrency sector is therefore at a crossroads: on one hand, the opportunity to revolutionize the global financial system; on the other, the risk of becoming a fertile ground for illicit activities. 

The challenge will be to find a balance between innovation and security, while ensuring transparency, legality, and trust for all the actors involved.

In a constantly evolving context, it will be essential for crypto companies, regulators, and end users to collaborate to build a safer and more sustainable ecosystem.