Record-Breaking Crypto Crime Expected in 2024 as Criminal Activities Evolve

Preliminary data from Chainalysis suggests that 2024 could set new records for crypto crime, with early estimates showing $40.9 billion received by illegal addresses. Based on historical patterns, this figure might reach $51 billion once all data is analyzed, surpassing the previous year’s total of $46.1 billion.

Crypto Crime: How Criminal Groups Are Changing Their Methods

The cryptocurrency crime landscape has shifted dramatically from simple cybercrime to more complex operations. Stablecoins now make up 63% of all illegal transactions, replacing Bitcoin as criminals’ preferred choice. This change reflects broader market trends, with stablecoin activity growing 77% compared to the previous year.

North Korean hackers emerged as major threats in 2024, stealing $1.34 billion from cryptocurrency platforms—about 61% of all stolen crypto funds for the year. These attackers often posed as IT workers to infiltrate crypto companies, using advanced tactics to breach security systems.

Private key compromises proved particularly devastating, accounting for 43.8% of all stolen cryptocurrency. Meanwhile, investment scams and “pig butchering” schemes (where scammers build relationships with victims before defrauding them) ranked among the most successful fraud types.

The rise of artificial intelligence in crypto crime marked another significant development. Criminals now use AI to create personalized scam messages and bypass security checks.

They’re also working with services like Huione Guarantee, which has processed over $70 billion in crypto transactions since 2021, supporting various illegal activities from fraud to gambling operations.

Traditional criminal organizations are increasingly turning to cryptocurrency for activities like drug trafficking and money laundering. This has created a more diverse criminal ecosystem, with $10.8 billion flowing to organizations that either commit crimes directly or provide tools and services for other criminals.

Despite these concerning trends, some areas showed improvement. Darknet market revenues decreased from $2.3 billion to $2 billion, while fraud shop earnings dropped by more than half to $220.1 million. These reductions partly resulted from successful law enforcement operations, including the takedown of a major crypto payment processor used by fraud shops.

The report highlights how cryptocurrency crime has evolved beyond simple hacks and scams into a sophisticated ecosystem of professional criminal services. While total illegal transactions remain below 1% of all cryptocurrency activity, the increasing complexity and scale of these operations present growing challenges for law enforcement and security professionals.