$649 billion in stablecoin transactions or 5.14% of all stablecoin transactions in 2024 were high-risk addresses linked to illicit activities

Bitrace 2025 Crypto Crime Report said that $649 billion in stablecoin transactions linked to illicit activity.

This is about 5.14% of all stablecoin transactions in 2024, were high-risk addresses linked to illicit activities.

Tron-Based USDT still dominates, but Ethereum gains ground as crypto escrow and gambling surge.

Blockchain compliance firm Bitrace has released its 2025 Crypto Crime Report, revealing that an estimated $649 billion worth of stablecoins were transacted through high-risk addresses associated with illicit activity in 2024.

That accounts for 5.14% of all stablecoin volume, a slight drop from 5.94% in 2023 — but still far above levels seen in 2022 (2.8%) and 2021 (1.63%).

High-risk addresses, as defined by Bitrace, are used by illegal entities to receive, transfer, or store stablecoins, typically scored by compliance platforms based on their risk of criminal association.

The vast majority of these high-risk stablecoin flows — over 70% — occurred via TRON-based USDt (USDT).

However, Bitrace notes that Ethereum-based USDT and USDC usage is rising, indicating a slow shift in network preference among illicit users.

In total, addresses linked to illicit activity on Ethereum and TRON received over $278.1 billion in 2024, slightly exceeding the 2023 figure and continuing a multi-year growth trend.

Bitrace highlights the growing role of crypto escrow services — platforms that facilitate transactions across all stages of illicit trade by establishing trust between criminals.

Platforms like Huione Guarantee and its Southeast Asian rivals became critical infrastructure in 2024, handling $2.64 billion in transactions by Q4 alone. These platforms have gained traction alongside rising stablecoin adoption in real-world economies, especially in regions with looser oversight.

USDT remains the primary stablecoin of choice for high-risk activity. Bitrace attributes this to its large market capitalization (over $148 billion) and deep liquidity. USDC, while smaller at $62 billion, is growing in illicit transaction share.

TRON’s continued dominance in these flows is harder to explain. Despite Ethereum hosting $124.3 billion in circulating stablecoins (versus TRON’s $71 billion), 47.4% of USDT supply sits on TRON, slightly ahead of Ethereum’s 45.44%. Lower fees and faster settlement times may be factors.

Online gambling platforms also saw significant growth. In 2024, they processed $217.8 billion in stablecoin payments, up 17.5% from 2023. USDT was again the dominant token used, but USDC’s share climbed to 13.36%, showing momentum.

The growth in gambling coincides with data showing crypto casinos generated over $81 billion in revenue in 2024, even as regulators across multiple jurisdictions cracked down on access.