Derived from Cointribune, stablecoins accounted for 63% of illicit cryptocurrency activity in 2024, surpassing Bitcoin as the preferred tool for criminal transactions. The Financial Action Task Force (FATF) reported in June 2025 that stablecoins are increasingly used by illicit actors, including North Korean entities, drug traffickers, and terrorist financiers, for cross-border money laundering and scams. Chainalysis noted that these assets are favored for their ease of movement and pseudonymous nature, often transacted through unregulated exchanges or OTC markets. In Korea, stablecoins have been linked to scams like 'Oda Jangjip,' where fake listings on e-commerce platforms are used to defraud buyers. The UNODC also highlighted the use of Tether (USDT) on the TRON blockchain by Southeast Asian bad actors for online fraud. Chainalysis recommended users verify token contracts, use hardware wallets, and enable multi-factor authentication to mitigate risks. For institutions, continuous transaction monitoring and compliance with AML standards are advised. Stablecoins' market cap now exceeds $313 billion, with U.S. Treasury Secretary Scott Bessent projecting a potential $2 trillion valuation within three years.
Stablecoins Surpass Bitcoin in Illicit Crypto Transactions in 2024
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