Binance Report Shows Crypto Crime Still Below 1%

Binance Research has published new findings showing that illicit crypto activity remains a small fraction of total onchain volume, even as the absolute dollar figure of suspicious funds continues to grow.

$75 Billion Trapped Onchain

A new analysis by Binance Research suggests that more than $75 billion in illicit funds are visible and traceable onchain, yet illicit crypto activity continues to account for less than 1% of total transaction volume.Binance Research noted that in 2025 the figure rose another 28% compared to 2024, attributing the increase to the fact that less of it is being successfully laundered.

Binance Research highlighted that over 80% of illicit funds no longer remain in the original crime-linked wallet addresses, with assets often moving through downstream wallets, although every transfer remains permanently recorded onchain. That immutability is increasingly working against bad actors. Privacy tools such as Wasabi Wallet and CryptoMixer are no longer scalable solutions for modern cyber-heists, with these platforms processing a combined average of only $10 million in daily volume.

The findings are broadly consistent with other industry data. Chainalysis estimates that the illicit share of all attributed crypto transaction volume increased slightly from 2024 but remains below 1%.Stablecoins now account for 84% of all illicit transaction volume, dominating the landscape of illicit transactions.TRM Labs, meanwhile, found that the percentage share of illicit activity continued to decline, falling to 1.2% in 2025 from 1.3% in 2024, well below the 2023 high of 2.4%.

Blockchain Transparency as a Deterrent

Binance Research is pushing back against the idea that crypto is mainly a money-laundering tool, arguing that public blockchains have made illicit funds easier to trace, freeze, and seize than many traditional financial flows, framing blockchain transparency as a growing problem for criminals rather than a shield for them.

Other investigations put things in context by contrasting crypto to traditional finance, indicating that the unlawful volume on key exchanges is in the low billions, well below the trillions global watchdogs estimate for traditional money laundering every year. Still, analysts caution that the picture is not straightforward. Authorities and skeptics note that research firms can still miss some transfers, especially when criminals utilize long chains of intermediaries or loosely regulated platforms.

The broader takeaway from Binance Research is that blockchain's permanent transaction record is increasingly closing off exit routes for illicit actors, even as the nominal value of suspicious funds onchain continues to rise.

Sources:
Binance Research: Over $75 Billion in Illicit Crypto Stuck Onchain - Crypto Times
2026 Crypto Crime Report Introduction - Chainalysis
2026 Crypto Crime Report - TRM Labs