Illicit Funds in Crypto Ecosystem Shrank 9% Last Year, Yet Criminals Still Handled Nearly $35B: TRM Labs
Illicit activity in the cryptocurrency ecosystem decreased by 9% in 2023 compared to 2022, with criminals handling nearly $35 billion worth of cryptocurrencies, according to a report by blockchain analytics firm TRM Labs. The report found that scams and frauds accounted for almost a third of all crypto crimes in 2023. Regulatory pressure led to a drop in hacked and sanctions-exposed funds volumes, with hack proceeds falling by over 50% to $1.8 billion from $3.7 billion in 2022. Sales of fentanyl and its precursor materials dropped by 150% in volume between 2023 and 2022, while sales of illicit drugs on darknet marketplaces increased to $1.6 billion from $1.3 billion in 2022. Almost half of all illicit crypto volume occurred on the TRON Blockchain, with Tether (USDT) having the largest share of illegal volume at $19.3 billion. The number of unique TRON addresses that received Tether rose by 125% in 2023.
