Tron Facilitated Most Illicit Crypto Transactions in 2024 – Report

Blockchain platform TRON facilitated the majority of illicit crypto transactions in 2024, including transfers linked to sanctioned entities, according to a report by blockchain analytics firm TRM Labs.

The analytics firm released its 2025 crypto crime report on February 10, revealing a 24% year-over-year decline in illicit cryptocurrency transactions, totaling $44.7 billion in 2024.

However, the report cautioned that the final estimate for illicit transaction volume in 2024 is expected to surpass the current projection of $44.7 billion. “And may even be above US$75 billion if we carry forward our upward revision for the 2023 figure (US$34.8 billion) so far,” the report stated.

Despite the supposed overall decrease, TRON remained the dominant network for unlawful activity, accounting for more than $26 billion of the total. Ethereum and Bitcoin followed as the next most-used platforms for illicit transactions.

Additionally, although illicit activity declined, total transaction volume across blockchain networks — including Bitcoin, Ethereum, Tron, Binance Smart Chain, and Polygon — rose by 56% to $10.6 trillion.

“This represents 0.4 per cent of overall crypto volume and marks a 51 per cent decrease from 2023. TRM now determines that illicit volume accounted for approximately 0.9 per cent of total crypto volume in 2023,” the report stated.

TRM Labs defines illicit activity in their report as transactions linked to fraudulent investment schemes, scams, hacks, sanctioned entities, and darknet marketplaces.

The report cites that TRON’s attractiveness to illicit actors is driven by its low transaction costs, easy access to major stablecoins, and the advanced capabilities of its smart contracts.

TRM Labs’ analysis revealed that although cash, traditional financial institutions, money service businesses, and informal hawala networks—a trust-based system for transferring money without physical movement — remain the primary channels for terrorism financing, the use of cryptocurrency by terrorist organizations grew in 2024.

Crypto and Terrorist Financing

The report emphasized growing concerns over the increasing use of cryptocurrency by the Islamic State Khorasan Province (ISKP), ISIS’ affiliate in Afghanistan.

Moreover, the report identified four instances in 2024 where ISKP used cryptocurrencies, including a deadly attack in Moscow in March. It also noted that cryptocurrency donations continued to be sent to addresses linked to Hamas, the Hamas-affiliated online entity GazaNow, and the Mujahideen Brigades, a militant organization.

Stablecoins remain the primary choice for entities financing terrorist activities, with an increasing reliance on self-custody wallets and mixers to obscure transaction trails, the report found.

Self-custody wallets, where users retain full control of their private keys rather than relying on a third-party provider, and mixers, which pool and redistribute cryptocurrencies to obscure transaction origins, are increasingly being used to evade detection.

In 2024, there was a rise in the use of fraudulent credentials to circumvent exchange-imposed know-your-customer (KYC) measures designed to verify user identities. Additionally, interest in privacy-focused cryptocurrencies like Monero, known for their enhanced anonymity and resistance to tracking, continued to grow.

The number of publicly reported ransomware attacks increased in 2024, reaching 5,635 cases compared to 5,223 incidents the previous year.

The analytics firm reported that ransomware demands surged to record levels in 2024, exemplified by an unprecedented $75 million payment made by an undisclosed organization to the Dark Angels ransomware group in March.

In response to global crackdowns, sanctioned entities, terrorist organizations, and ransomware groups have adapted their tactics, increasingly leveraging new technologies and methods to conceal their activities, according to the firm.

“Ultimately, the fight against crypto crime requires a proactive, collaborative approach. Regulatory bodies, law enforcement agencies, and private sector partners must continue to adapt, innovate, and cooperate to outpace increasingly sophisticated threat actors,” the report stated in closing.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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