Criminals and Their Networks Hold $75B in Crypto Assets, Says Chainalysis
Chainalysis’ newest Crypto Crime Report has revealed that criminals and their downstream networks maintain roughly $75 billion in crypto belongings obtained via illicit means.
According to data tracked via July 2025, illicit entity balances of BTC, ETH, and stablecoins have reached practically $15 billion. Wallets downstream from these entities, outlined as these receiving over 10% of funds from illicit sources, maintain over $60 billion.
This represents a 359% surge from illicit crypto holdings noticed in 2020.
Darknet Markets Dominate Criminal Crypto Asset Holdings
Darknet market individuals alone management over $46.2 billion in on-chain worth, representing the one largest class of illicit downstream pockets holdings.
This isn’t stunning, on condition that darknet markets have been among the many first to undertake cryptocurrency, beginning with Silk Road in 2011. Additionally, many of those wallets have benefited from years of value appreciation.
Money laundering platforms, reminiscent of Black U, additionally act as transit factors, transferring worth via numerous infrastructure, which implies complete downstream holdings might be even larger than reported.
Chainalysis means that whereas scammers and darknet markets transfer cash shortly, hackers face operational challenges in laundering giant volumes, forcing them to carry belongings on-chain longer.
The $1.5 billion Bybit hack linked to North Korea illustrates the issue of off-ramping giant sums with out detection.
In most illicit exercise classes, reminiscent of stolen funds, ransomware, and darknet markets, over 50% of balances are concentrated in the highest three wallets.
Exceptions embody terrorist financing and child abuse materials, that are distributed throughout a number of wallets attributable to their transient nature.
The asset sort additionally impacts focus patterns. Stablecoins present much less focus than BTC or ETH throughout classes, seemingly reflecting threat administration by criminals, as stablecoins might be frozen by centralized issuers if linked to illicit exercise.
Since May 2023 — when PulseChain went reside:
USDT: ~$843 million frozen
USDC: ~$120 million frozen$pDAI: $0 frozen
Tether and Circle have confirmed their stablecoins might be frozen (halted), blacklisted (entry revoked), or locked — denying holders management over their funds.
— DAI on PulseChain (@PulseChainDAI) July 22, 2025
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Centralized Exchanges Remain Primary Cash-Out Points
Despite KYC and AML oversight, centralized exchanges stay the popular alternative for criminals to transform crypto to fiat, however their techniques are evolving quickly.
Flows from illicit sources to CEXs neared $7 billion in the primary half of 2025 and have averaged over $14 billion yearly since 2020.
However, direct transfers from illicit entities to exchanges have declined considerably, from over 40% in 2021-2022 to round 15% now. This shift signifies that criminals have tailored to compliance efforts by introducing further layering steps, reminiscent of mixers and cross-chain bridges.
Data shows that occasional crimes, reminiscent of stolen funds or ransomware, have the shortest lifespans, with 50% of wallets receiving no further inflows after the preliminary incident.
Darknet markets, on-line pharmacies, and fraud retailers generally function for 807 to 959 days, benefiting from community results and established reputations.
Terrorist financing operations present 50% survival charges at simply 54 days, indicating short-lived efforts attributable to high consideration and fast regulation enforcement motion.
Additionally, after operations, illicit entities exhibit totally different behaviors relying on the cryptocurrency they maintain.
Stablecoins are liquidated urgently; practically 95% are drained inside 90 days after the final influx, with solely 29.5% of wallets sustaining balances after one 12 months.
Ethereum follows a extra measured sample, with roughly 87% of ETH moved inside 90 days; nonetheless, 35.6% of wallets retain ETH for over one 12 months.
Bitcoin demonstrates distinctive endurance, with criminals transferring solely 52% of BTC inside 90 days, and 36.7% of wallets sustaining bitcoin balances after a full 12 months.
What Law Enforcement Can Do
While centralized stablecoins might be frozen by issuers, confiscating BTC and different permissionless cryptocurrencies requires acquiring personal keys or intercepting funds at centralized off-ramps.
To successfully seize these belongings, Chainalysis means that authorities require expedited seizure powers for time-sensitive investigations, a sturdy framework for cross-border cooperation, and technical capability with blockchain analytics instruments.
If authorities coordinate motion and implement obligatory measures, these billions in illicit proceeds sitting on public blockchains are theoretically seizable.
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