Crypto Criminals Pay 14x Higher Fees to Dodge Detection—Chainalysis Exposes Cost of Shadows

Crypto's underworld is getting pricier—Chainalysis reveals bad actors now hemorrhage 14x more in fees just to stay hidden. Turns out crime doesn’t pay… unless you overpay.

The Obfuscation Tax

Blockchain sleuths caught illicit players burning cash on complex transaction masking—proof even crooks face inflation. Layer-hopping, mixers, privacy coins—all come at a premium when regulators are breathing down your neck.

Compliance Wins, Criminals Lose

While DeFi’s transparency tools tighten the noose, darknet dealers ironically fund the very infrastructure hunting them. Poetic justice—with a side of ‘sucks to be you’.

The Irony Punchline

Nothing says ‘bullish on crypto’ like watching criminals subsidize blockchain surveillance. Wall Street’s old boys must be jealous—their offshore havens never charged this much for sketchy bookkeeping.

Personal wallet attacks and ‘wrench attacks’

While centralized exchanges remain key targets, personal wallets now represent a growing share of the losses, accounting for 23.35% of stolen funds this year.

Chainalysis linked this trend to rising adoption and improved exchange security, which may be pushing attackers to exploit individuals perceived as less protected.

According to the report, Bitcoin holders continue to be the most frequent victims, with attackers increasingly resorting to physical violence tactics known as “wrench attacks.”

In this type of attack, victims are coerced to reveal their private keys through threats or force. Though rare, these attacks have become more common as rising bitcoin prices have attracted opportunistic criminals.

Moreover, there has also been a disturbing rise in kidnappings of crypto executives and their family members this year.

Considering this, Chainalysis concluded:

“It is clear that 2025 is well on track to have potentially twice as many physical attacks as the next highest year on record.”

Laundering tactics evolve

On the laundering front, attackers targeting crypto services demonstrate more sophistication than those focused on personal wallets.

According to Chainalysis, attackers who target exchanges and services often deploy more advanced methods, such as chain-hopping through cross-chain bridges and using mixers.

In contrast, those stealing from personal wallets tend to rely on basic tools like centralized exchanges or direct interactions with token contracts to hide stolen funds.

Interestingly, criminals are now holding stolen assets for longer periods. A growing number of wallet-based attacks show funds remaining idle on-chain, indicating either confidence in operational security or an intent to follow standard “HODL” investment behavior.

Chainalysis also found that threat actors are paying higher-than-normal fees to MOVE illicit funds, which can be up to 14.5 times the average transaction fee in 2025.

The firm noted that this premium is being paid despite an overall drop in average transaction costs since 2022. According to Chainalysis:

“It is also notable that threat actors targeting services typically pay higher premiums than those conducting personal wallet thefts, likely reflecting the urgency of moving large sums before detection and freezing measures can be implemented.”