Crypto Crime Surges to Record $158 Billion in 2025 Despite Declining Market Share
Illicit cryptocurrency transactions surged 145% year-over-year to reach $158 billion in 2025, according to TRM Labs' latest report. This marks a dramatic reversal from the multi-year decline that saw volumes drop from $85.9 billion in 2021 to last year's low of $64.5 billion.
While absolute numbers spiked, illicit activity's share of total crypto transactions actually fell to 1.2% - down from 1.3% in 2024 and well below the 2.4% peak in 2023. The data suggests criminals are being outpaced by legitimate adoption, with illicit inflows representing just 2.7% of VASP transactions versus 2.9% in 2024.
Market analysts note the paradox: "Like rats fleeing a sinking ship, bad actors are consolidating their stolen funds even as the crypto ocean expands." The report highlights sanctions-related activity as a growing concern, with blockchain analytics becoming both a weapon and shield in this digital arms race.
