A new report by TRM Labs reveals that the Tron (TRX) blockchain achieved the largest reduction in illicit crypto activity, with a 24% drop to $45 billion. Despite criticism of cryptocurrencies for facilitating illegal activities, these transactions account for only 0.4% of total crypto transfers.
Overview of TRM Labs Report
In 2024, the Tron (TRX) blockchain saw a $6 billion reduction in illicit transactions, equivalent to 'halving' the proportion of such activity in total blockchain turnover, according to the 2024 Crypto Crime Report by TRM Labs. However, Tron (TRX) still accounts for 58% of illegal crypto transactions.
Comparison with Other Blockchains
Alongside Tron (TRX), Ethereum (24% of illicit volume), Bitcoin (12%), Binance Smart Chain and Polygon (3% each) are included in the report. Analysts highlight a preference for blockchains with low transaction fees, smart contracts, and popular stablecoins. As a result, the focus of illicit activity shifted away from privacy-centric cryptos like Monero and ZCash.
Other Categories of Illegal Activity
In 2024, $2.2 billion was stolen in crypto hacks. Inflows to sanctioned entities dropped to $14.8 billion as the U.S. OFAC sanctioned 86 cryptocurrency addresses. Fraud-related transactions decreased by 40% but still total over $10.4 billion. However, illegal drug sales and blockchain service hacks gained momentum, with hackers transferring $2.2 billion and darknet drug marketplaces processing $2.4 billion.
The report highlights a significant reduction in illicit crypto transactions, notably on the Tron blockchain, but warns of increases in other illegal activity categories. This underscores the importance of continued efforts to combat crypto-related crime.
