For years, Bitcoin was widely associated with cryptocurrency-related crime. New industry data suggests that picture has changed astronomically, with stablecoins now accounting for the vast majority of identified illicit cryptocurrency activity.
The change of terms was accentuated by Bitcoin-focused financial services company River, which cited blockchain intelligence findings showing that Bitcoin’s role in unlawful crypto transactions has declined sharply over the past several years. According to data attributed to Chainalysis, Bitcoin represented roughly 70% of illicit cryptocurrency transaction volume in 2020. By 2025, that figure had fallen to approximately 7%, while stablecoins had grown to account for around 84% of identified illicit transaction volume.
The numbers point to a drastic transformation in how cybercriminals, fraud operators, sanctioned entities, and money-laundering networks move digital funds across borders.
Why Stablecoins Are Becoming More Attractive to Criminal Networks
Unlike Bitcoin and many other cryptocurrencies, stablecoins are designed to maintain a relatively fixed value, typically by being linked to a traditional currency such as the U.S. dollar.
This stability removes one of the major risks associated with cryptocurrency transactions. A criminal group holding $1 million in Bitcoin today could see the value fluctuate significantly within days. Stablecoins largely eliminate that uncertainty, allowing illicit actors to move, store, and transfer funds without being exposed to major price swings.
Researchers say this makes stablecoins particularly useful in fraud schemes, investment scams, money-laundering operations, and cross-border transfers where predictable value is important.
The spike in acceptance of stablecoins across exchanges, payment services, and over-the-counter trading networks has also contributed to their increased use. Many stablecoins can be transferred globally within minutes while maintaining a value closely tied to fiat currency, making them practical for both legitimate and illegitimate financial activity.
Bitcoin Still Appears in Certain Criminal Operations
Despite its declining share, Bitcoin has not disappeared from the cybercrime infrastructure. It is still part of the overall pipeline in digital currency exchange.
Blockchain investigators continue to observe Bitcoin being used in ransomware attacks, darknet marketplaces, and extortion schemes. In these environments, long-established infrastructure, existing payment workflows, and familiarity among threat actors continue to support Bitcoin’s use.
However, analysts note that criminal organizations are increasingly treating Bitcoin as only one option within a much larger digital financial ecosystem rather than the default cryptocurrency for illicit transactions.
Illicit Crypto Activity Continues to Soar
The change in asset preference comes as blockchain intelligence firms report increases in the overall value of illicit cryptocurrency activity.
TRM Labs recently estimated that illicit cryptocurrency flows reached approximately $158 billion in 2025, representing the highest level recorded by the company. The firm reported a sharp increase from the previous year, attributing much of the growth to sanctions-related activity, sophisticated money-laundering operations, underground financial networks, and expanded use of cryptocurrency by state-linked actors.
A large portion of these transactions involved stablecoins in the gra
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