Chainalysis Uncovers $75 Billion in Hidden Illicit Crypto Transactions
Chainalysis has identified a staggering $75 billion in illicit cryptocurrency that remains dormant in publicly accessible wallets. This discovery uncovers a significant digital bounty that global law enforcement could theoretically seize.
Summary
- Chainalysis has uncovered $75 billion in illegal cryptocurrency stored in public wallets, primarily related to stolen assets and darknet markets.
- Bitcoin constitutes 75% of total criminal holdings, as hackers increasingly view it as a reliable store of value.
- Direct transfers to exchanges have decreased to 15%, indicating a shift toward mixers and cross-chain bridges to avoid detection.
In a report released on October 9, blockchain analytics firm Chainalysis presented a pivotal analysis of static on-chain balances, revealing that illicit entities and their subsequent networks control over $75 billion in cryptocurrency collectively.
The study differentiates between wallets directly associated with criminal activities, which house nearly $15 billion, and a vast array of downstream wallets that have received portions of illicit funds, accounting for the remaining $60 billion.
Criminal balances rise as Bitcoin solidifies its role in illicit finance
The report indicates that the combined holdings of Bitcoin, Ethereum, and stablecoins directly possessed by illicit entities have surged by 359% since 2020, nearing $15 billion as of July 2025. Stolen funds are the predominant component of this landscape, representing the largest category.
Chainalysis points out that while scammers and darknet markets tend to move money rapidly, hackers often encounter operational hurdles in laundering substantial sums, compelling them to retain assets on-chain for extended periods. The recent $1.5 billion Bybit hack linked to North Korea exemplifies the challenges tied to off-ramping significant amounts without attracting attention.
The report also highlights the extensive network of downstream wallets linked to illicit actors, collectively holding over $60 billion in crypto, approximately four times the value stored in primary illicit wallets.
Darknet market administrators and vendors alone command an astonishing $46.2 billion, reflecting the long-standing profitability of these marketplaces that date back to the Silk Road era. According to Chainalysis, this downstream total could be even greater, as money laundering platforms functioning as transit points may obscure the entire trail of funds.
Illicit entities favor Bitcoin
Bitcoin remains the preferred asset for criminal activities, making up 75% of all illicit entity holdings. This dominance can be attributed to its significant price appreciation over time, exponentially increasing the value of balances in older wallets.
Criminals also seem to treat Bitcoin as a long-term store of value; the report found that over a third of illicit BTC wallets still contain balances a full year after their last activity. In contrast, stablecoins display less wallet concentration, likely due to criminals recognizing that centralized issuers can freeze them and thus diversifying their risk.
The Chainalysis report sheds light on a remarkable shift in how criminals are cashing out, with direct transfers from illicit entities to centralized exchanges plummeting from over 40% to around 15%. This suggests a significant movement toward utilizing mixers and cross-chain bridges for obfuscation.
For law enforcement, these behavioral changes complicate the timing and execution of asset recovery efforts. However, the inherent transparency of blockchain provides a unique advantage. Chainalysis stated that its data has already aided authorities in seizing over $12.6 billion in illicit funds globally.