TRM Labs has published its 2025 Crypto Crime Report, revealing a 24% decrease in crypto-related criminal activity compared to 2023. The blockchain intelligence firm attributes the decline to better industry coordination, enhanced law enforcement, and advanced analytics tools being widely adopted.
The report, released on June 17, also highlights the increasing prominence of stablecoins in legal transactions. More than 60% of all crypto transaction volume in 2024 involved stablecoins, with 99% of that activity being legal and compliant.
Stablecoins drive compliance and transparency
According to TRM Labs, stablecoins are playing a central role in crypto’s shift toward transparency. With most stablecoins operating on public blockchains, transactions can be tracked precisely, which makes them more traceable than cash. Centralized stablecoin issuers like Tether and Circle also have tools to freeze or destroy tokens linked to criminal activity.
This ability to intervene in illicit transactions gives regulators and issuers a way to control risk. TRM Labs noted that these features are helping stablecoins become a preferred tool for compliance in the digital asset space. Despite their role in promoting legal activity, stablecoins were also used in 60% of crypto-based illicit transactions in 2024, especially in areas like fraud, ransomware, and terrorist financing.
Illicit activity drops amid law enforcement efforts
TRM Labs reported that total crypto-related illicit activity amounted to $45 billion in 2024, representing just 0.4% of overall transaction volume. The decline in criminal usage is being linked to stronger regulatory oversight and the work of industry players like TRM Labs, which is part of the T3 Financial Crime Unit. The group includes TRON and Tether and is focused on reducing crime through shared intelligence and enforcement actions.
Ransomware attacks continued to pose a threat, with 5,635 publicly reported cases and a $75 million ransom paid to the Dark Angels Ransomware group in March 2024. The report also named the Islamic State Khurasan Province as one group using crypto for terrorist financing.
GENIUS act brings regulatory clarity to stablecoins
A U.S. law is in process, the GENIUS Act, which is passing in the Senate and may establish categorical rules on stablecoin issuers. The law has licensing provisions, required audits, reserve guarantees, and consumer protection. With a bipartisan group of legislators and former President Donald Trump, it will represent a possible change of approach toward regulation of digital assets in the U.S.