Criminal networks now control an estimated $75 billion in cryptocurrency obtained through illegal activities, according to new data from Chainalysis covering transactions through July 2025. The figure marks a staggering 359% increase since 2020, highlighting how illicit crypto use has grown alongside legitimate adoption.
Darknet markets account for the majority of these holdings, controlling roughly $46.2 billion. These underground networks, which trace their roots to the infamous Silk Road in 2011, have evolved into sophisticated ecosystems, leveraging privacy technologies and decentralized tools to evade detection. Chainalysis notes that these markets have also benefited from years of crypto price appreciation.
While centralized exchanges remain the primary off-ramp for laundering digital assets, criminal activity is adapting. Direct transfers from illicit wallets to exchanges have dropped sharply, from 40% in 2021–2022 to 15% today, as criminals increasingly rely on mixers, privacy coins, and cross-chain bridges to conceal fund movements.
The report also highlights differing behavior across asset types. Stablecoins are typically liquidated quickly, 95% of funds within 90 days, whereas Bitcoin holders tend to hold longer, with only 52% moved within the same period.
For law enforcement, stablecoins are easier to freeze due to centralized issuers’ control, but Bitcoin remains more challenging to seize, often requiring private key access or intervention at exchanges. Chainalysis warns that while overall transparency in blockchain transactions remains high, the growing sophistication of laundering tools poses “a serious risk to global financial integrity.”
