Bitrace cypto crime report: Over 5% of stablecoin transfers went to high-risk addresses

The increased usage of stablecoins has also reached crypto crime markets. In 2024, around 5.14% of all stablecoin trading activities could be linked to high-risk addresses

In 2025, stablecoin activity grew as a whole, along with the inflow to high-risk addresses. The Bitrace Crypto Crime Report for 2024 showed stablecoin payments to high-risk addresses reached $649B worldwide. In 2024, overall stablecoin volumes expanded to over $450B per month, processing an estimated $14T for the whole year.

Stablecoin usage increased in place of BTC or ETH payments, as a more intuitive tool. This also invited more scammers or hackers to use the dollar-denominated tokens. Based on Bitrace data, up to 5.14% of all crypto trading activity was linked to high-risk addresses

Online gambling and personalized scams saw increased inflows of stablecoins, with a growing share of USDC. | Source: Bitrace

Stablecoin addresses were also closely watched for links to exploits or scams. As most of the highly active USDT tokens are on Ethereum, they were especially suited to the habits of DPRK hackers, who typically quickly swap and launder ETH-based tokens

However, the TRON-based USDT also occupied a significant share of risky addresses. TRC-20 tokens were often used in P2P markets, some of which still conceal illegal operations or are used for laundering

Crypto hacks as a whole slowed down, but various forms of laundering accelerated in 2024. TRON was especially vigilant about its stablecoin supply, deploying the T3 Financial Crime Unit in partnership with Tether.

Bitrace tracks stablecoins to several illegal activities

Stablecoins flow into several legally grey areas or outright illegal activities. The biggest share of flagged addresses belonged to grey or black markets

Fraud and online gambling were the new growth categories in 2024, surpassing the activity of 2023. Online gambling grew by 17.5% in the past year, for a share of $217B. While USDT was still the leading coin, USDC also grew its share of online gambling

A total of $86.3B in stablecoins flowed into various money laundering destinations. Part of the ability to launder funds was linked to the growth of Web3 facilities, including DEX, lending protocols, and privacy networks like ThorChain. The 2024 laundering trend extended into 2025, as hacking activity resumed

Even with a record supply of stablecoins, the share of those illegal activities remained relatively high as part of the overall turnover. In 2023, up to 5.49% of stablecoins went to dubious addresses, for a total of $574.4B

Bitrace’s estimate shows stablecoins are now more widely used for high-risk activities compared to the bull market of 2021 and 2022. Traders also shifted their selection of currencies, with TRC-20 USDT having the biggest share of grey-area activity. Ethereum-based USDC also increased its usage despite Circle’s attempts to position the stablecoin as fully regulated and transparent

Only a small fraction of those addresses have been exposed and frozen despite regular monitoring. Escrow platforms like Huione Guarantee are one of the key elements of laundering, expanding their volume to $2.64B in 2024. The increased activity of escrow services coincided with a spike of fraud activities. Personal fraud drew in $52.5B in stablecoin traffic for the whole of 2024, exceeding all yearly activity since 2021.

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