Stablecoins Replace Bitcoin in Dark Web Crime as Illicit Transactions Surge to $154 Billion in 2025

Global cryptocurrency crime rose sharply in 2025, reaching $154 billion in illicit activity. This represents a 162% increase from the previous year, according to Chainalysis. The rise is driven largely by the increasing use of stablecoins for illegal transactions.

Stablecoins now account for 84% of all identified illicit crypto activity, surpassing Bitcoin, which only makes up 7% of such transactions. This shift is attributed to the price stability and liquidity of stablecoins, making them more practical for criminal enterprises.

Criminals have adapted to the advantages of stablecoins, using them to manage large-scale operations without the volatility of other cryptocurrencies. These stablecoins are often traded across global exchanges, enabling rapid conversion to fiat and bypassing traditional financial controls.

Why Did This Shift Occur?

The move from Bitcoin to stablecoins reflects an operational evolution in criminal activity. Bitcoin's volatility complicates financial management for illicit groups, whereas stablecoins offer predictable value. This makes it easier for criminals to operate on a larger scale without worrying about market swings.

Additionally, stablecoins can be transferred across borders quickly and without geographic restrictions, a feature not available through traditional banking systems. This gives criminal organizations an unprecedented level of flexibility in their operations.

How Did Markets Respond?

The rise in stablecoin usage for illegal activity has prompted regulatory action. The Financial Action Task Force (FATF) has accelerated its plans to enhance cryptocurrency monitoring standards. In the European Union, new provisions under the Markets in Crypto-Assets (MiCA) regulation now address stablecoin oversight.

The U.S. Treasury has also proposed new reporting requirements for transactions involving self-hosted wallets. These measures aim to close loopholes in existing regulations and improve traceability of illicit funds.

What Are Analysts Watching Next?

Experts warn that the decentralized nature of stablecoin protocols continues to complicate enforcement. Jurisdictional conflicts and enforcement gaps are exploited by criminal organizations, who are increasingly sophisticated in their methods.

Blockchain analytics companies are developing advanced tools to detect suspicious activity. These tools use machine learning and AI to monitor transaction patterns, flagging behavior that mirrors known criminal methodologies.

Academic research is also contributing to the fight against cryptocurrency crime. Techniques like graph analysis are being used to identify criminal networks with high accuracy, supporting both regulatory and industry efforts.

The rise in crypto crime also affects legitimate market participants. Institutional investors are demanding stronger security protocols before committing capital, and insurance premiums for custodians have increased. This reflects a growing awareness of the risks associated with digital assets.

Overall, the 2025 surge in stablecoin-based crime signals a need for stronger global cooperation, technological innovation, and regulatory clarity. As the digital asset ecosystem continues to evolve, maintaining market integrity will require ongoing vigilance from regulators, industry leaders, and law enforcement.