Rise of illicit crypto activity poses threat to the market
According to the report by analytics firm TRM Labs, the volume of illicit crypto transactions reached a record high of $158 billion in 2025, accounting for around 3% of the total crypto liquidity in the market. This is more than twice the share of illicit transactions in 2020.
The main sources of illicit crypto flows were various ransomware, fraud, and money laundering schemes. Hackers are increasingly using cryptocurrencies to launder the proceeds of their criminal activities. Moreover, groups specializing in the theft of crypto assets through phishing and other hacking methods have become more active.
The growth of illicit activity in the cryptocurrency market poses serious risks to both individual investors and the entire industry. The high level of fraud undermines users' trust in cryptocurrencies, which could slow down their mass adoption and development.
According to TRM Labs experts, combating cybercrime in the crypto space should be one of the key priorities for regulators, exchanges, and other market participants. The implementation of advanced transaction monitoring and analysis tools, as well as the strengthening of inter-agency cooperation, will make it possible to more effectively identify and suppress illegal schemes.