Illicit Crypto Holdings Top $75B as Bitcoin Dominates: Chainalysis
A new Chainalysis study estimates that more than $75 billion in cryptocurrency linked to criminal activity is currently identifiable on public blockchains, presenting what the firm calls an unprecedented opportunity for coordinated asset seizures.
The analysis focuses on static balances rather than transaction flows, arguing that the stock of assets sitting in wallets tied to illicit activity is the clearest indicator of what can be recovered today.
As of July 2025, wallets directly attributed to illicit entities hold nearly $15 billion across Bitcoin, ether, and stablecoins—up roughly 359% since 2020. Stolen funds are the single largest category by balance, reflecting the tendency of hackers to park assets while testing laundering routes or awaiting cash-out opportunities.
While the share of Bitcoin held by illegal actors has fallen in coin terms since 2020, BTC still represents about 75% of illicit entity balances by value, thanks to long-run price appreciation.
Ether and stablecoins have grown as a share of holdings, with stablecoins often used tactically as short-term liquidity during laundering.
Beyond the first hop, Chainalysis identifies over $60 billion sitting in “downstream” wallets—addresses that received more than 10% of their inflows from illicit sources—roughly four times the balances held by the illicit entities themselves.
Darknet market administrators and vendors account for over $40 billion of this total, showing how marketplace structures distribute wealth across operators and sellers and have benefited from a decade of crypto price gains.
Chainalysis cautions that some laundering hubs and cross-chain bridges act primarily as transit points, so their standing balances may understate their centrality to criminal value chains.
Centralized exchanges remain the preferred off-ramp, with illicit inflows averaging more than $14 billion per year since 2020 and nearing $7 billion in the first half of 2025.
But criminals are adding layers to evade compliance: direct transfers from illicit wallets to exchanges have plunged from roughly 40% of quarterly flows in 2021–2022 to around 15% in Q2 2025.
Deposit address reuse is also collapsing, indicating faster turnover of exchange accounts. After operations cease, liquidation speeds diverge by asset: nearly 95% of stablecoin balances drain within 90 days, about 87% for ether, and only ~52% for Bitcoin—leaving a longer runway to interdict BTC holdings.
