In 2024, crypto transaction volume1 grew to over USD 10.6 trillion, up 56% since 2023. Illicit volume currently appears to have dropped to USD 45 billion, down 24% since 2023. This represents 0.4% of overall crypto volume and marks a 51% decrease from 2023. TRM now determines that illicit volume accounted for approximately 0.9% of total crypto volume in 2023.
The top categories of illicit activity on the blockchain currently remain largely the same as in 2023: Sanctions (33% of illicit volume), Blocklisted2 (29% of illicit volume), and Scams and Fraud (24% of illicit volume).
- TRON saw the largest drop in illicit volume in 2024: In 2024, the largest percentage of illicit crypto activity occurred on the TRON blockchain (58% of illicit volume), followed by Ethereum (24% of illicit volume), Bitcoin (12% of illicit volume), Binance Smart Chain (3% of illicit volume), and Polygon (3% of illicit volume), reflecting continued preference for blockchains that have low transaction fees, smart contracts, and popular stablecoins.
- Sanctioned entities continued to drive illicit crypto volume: Sanctioned entities drove the largest share of illicit crypto volume in 2024, though inflows decreased from USD 21.9 billion in 2023 to USD 14.8 billion — a 33% decline.
- Cryptocurrency use in terrorist financing expanded: While it’s highly likely that cash, traditional financial institutions, money service businesses, and hawalas still constitute the majority of terrorism financing, evidence of the growing use of cryptocurrency by terrorist groups is clear. Of particular concern is cryptocurrency’s growing role for ISIS’ affiliate in Afghanistan, Islamic State Khurasan Province (ISKP), one of the most significant transnational terrorist threats today.
- Ransomware demands reached an all-time high: Ransomware has remained a prolific and growing threat in 2024, with 5,635 publicly reported attacks — surpassing 5,223 in 2023. The financial demands of ransomware actors have also reached unprecedented levels, exemplified by a record USD 75 million payment made to the Dark Angels ransomware group in March 2024. These escalating ransom demands highlight the increasing boldness and sophistication of threat actors, who are leveraging advanced tools and techniques to maximize their extortion efforts.
- USD 2.2 billion was stolen in crypto-related hacks: In 2024, USD 2.2 billion was stolen in hacks and exploits — a 17% increase from 2023 — bringing the three-year total to over USD 7.7 billion. The crypto space continues to grapple with evolving threats, with decentralized finance (DeFi) protocols remaining prime targets. The average hack size stood at USD 14 million, reflecting both the sophistication and scale of modern breaches.
- Scam and fraud volumes declined, but remain a significant threat in the cryptosphere: In 2024, funds sent to fraud amounted to at least USD 10.7 billion, representing a 40% decrease from 2023. This continued the decline from 2022, a year when funds sent to Ponzi schemes and financial grooming schemes (commonly referred to as “pig butchering” scams) reached an all-time high of about USD 16.8 billion.