Stablecoins have overtaken Bitcoin as the primary vehicle for cryptocurrency crime, handling about 84% of illicit transaction volume in 2025. The data marks a dramatic reversal from 2020, when Bitcoin accounted for roughly 70% of illicit transactions while stablecoins were about 15%, and Bitcoin’s share has since fallen to around 7%. Stablecoins’ practical benefits—price stability and easy cross-border transfers—along with the use of cost-efficient networks like TRON, have enabled sanctioned groups to move funds across borders outside traditional banking rails, with USDT and USDC emerging as favored tools.
Chainalysis released its 2026 Crypto Crime Report on Jan. 8, revealing that dollar-pegged tokens now handle the vast majority of illicit cryptocurrency activity. These developments have intensified government debates over stablecoin regulation globally, potentially bringing more oversight to payment systems even as privacy for users seeking speed and convenience comes under pressure. Despite the surge in criminal activity, illicit transactions still represent less than 1% of total cryptocurrency volume.
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