The analytical company Bitrace has published its annual report highlighting the scale of illegal activities in the Web3 sector for 2024. According to the report, the amount of crypto crimes in stablecoins on the TRON and Ethereum blockchains reached a record $649 billion in 2024. Of this amount, $217.8 billion was generated through online gambling services.
This is reported by Finway
Volumes of Illegal Transactions and Their Impact
The report notes that over $649 billion in stablecoins passed through addresses linked to illegal activities in the Ethereum and TRON networks. High-risk transactions, meaning those from addresses associated with criminal activity, accounted for 5.14% of all stablecoin operations. Although this figure decreased by 0.8% compared to 2023, it remains significantly higher than similar figures from 2021-2022.
Bitrace focused on online gambling platforms and pseudo-secured escrow services. In 2024, platforms like Huione Guarantee conducted transactions totaling $2.64 billion, while gambling sites processed $217.8 billion — a 17.5% increase compared to 2023.
“Criminals use escrow services as a ‘trust mechanism’ in criminal networks. This allows them to operate more effectively at various stages of illegal schemes,” the experts noted.
Efforts to Combat Financial Crimes
In 2024, addresses linked to fraud received $52.5 billion, exceeding the total amount from all previous years combined. The volume of stablecoins used for money laundering amounted to $86.4 billion, which is a slight decrease compared to 2023, indicating partial effectiveness of law enforcement measures.
Centralized exchanges, such as OKX, are actively working to reduce their share in money laundering. In February 2025, the cryptocurrency exchange signed an agreement with the U.S. Department of Justice, under which it will pay a fine of $505 million for violating AML regulations. Later, in April, the Maltese regulator also fined OKX’s European division for similar violations.
On the other hand, a positive trend has been the active support for investigations from issuers. In 2024, companies Tether and Circle froze over $1.3 billion on Ethereum and TRON, which is twice as much as in the previous three years combined.
Despite the decrease in activity of blockchain addresses linked to sanctioned individuals, analysts warn that due to the anonymity of cryptocurrencies, sanctions have limited effectiveness.
In particular, Hong Kong demonstrated an example of effective regulation in the cryptocurrency market in 2024. Thanks to clear rules, protection of client funds, and the attraction of institutional capital, the region created a stable ecosystem, contributing to a reduction in financial losses from crimes and an increase in trust in the industry.
In early April, Hong Kong’s Financial Secretary Paul Chan announced plans to adopt a bill on stablecoins.