Cryptocurrency has become a powerful tool for criminals and hostile governments. They move illicit finances without being caught. This report looks at how these groups use digital currencies to hide their illegal activities, and what this means for global security and law enforcement. It draws on a database of 164 cases from the past 20 years, showing just how large and fast-growing this problem has become.
Across these known cases, around $350 billion in illegal funds has been laundered through cryptocurrency. However, the response from authorities has been weak. Only 21% of cases have led to convictions, a third have never faced any legal action, and only 27% of stolen or illegal assets have been recovered. The report shows that stablecoins now play a major role in these schemes, including new coins created specifically to dodge international sanctions.
The problem is heavily concentrated in certain countries. Half of the illicit crypto exchanges were run from Russia. Major ransomware groups are largely based in Russia and Iran, and North Korea earns about a third of its government revenue from illegal crypto operations. At the same time, U.S. law‑enforcement seizures of cryptocurrency have fallen sharply, down 95% since 2021.
To tackle this growing threat, the report calls for specialist enforcement teams, stronger asset‑recovery systems, public risk alerts for investors, rewards for whistleblowers, and better use of AI to help detect and prevent abuse.
