Cryptocurrency is No Longer About Scammers: Illicit Funds Have Decreased by 96-98%

According to a recent analysis from Binance, based on data from Chainalysis and TRM Labs, the volume of illicit funds on the exchange has decreased by 96-98% from January 2023 to June 2025. This indicates significant progress in combating "dirty" money in the crypto sphere.

The study shows that among the total volume of transactions on Binance, only 0.007% is linked to illicit wallets – this is the lowest rate among major crypto exchanges, more than 2.5 times lower than the global average of 0.02% for other platforms. Overall, the share of illicit activity in cryptocurrency accounts for only 0.14% of the entire on-chain transaction volume in 2024, according to Chainalysis, or 0.4% according to TRM Labs.

Compared to traditional finance, cryptocurrency plays a minimal role in money laundering. The total volume of illicit crypto assets in 2024 is estimated at $40.9 billion (Chainalysis) or $45 billion (TRM Labs), which represents only a small fraction of the global money laundering volume, estimated by the UN at $800 billion to $2 trillion annually. Thus, crypto accounts for less than 5% of all illicit financial flows, and in some estimates - even closer to 0.1-0.4% of the total crypto volume, confirming that "dirty money" primarily circulates through banks and traditional channels.

Binance is actively contributing to this trend by increasing its staff of security specialists, collaborating with authorities, and improving monitoring systems. For example, the exchange participates in initiatives like the T3 Financial Crime Unit alongside TRON and Tether, which has allowed freezing over $130 million in illicit funds in cooperation with law enforcement. Overall, the volume of illicit activity in crypto has decreased by 24% compared to 2023, although in the first half of 2025, an increase in thefts amounting to $2.17 billion has been recorded – more than for the entire 2024.

Experts believe that such trends open the way for cryptocurrency to become a full-fledged financial instrument on par with banks. "Black money" is becoming significantly less, and in the future, its volume may decrease to a minimum, making crypto safer and more accessible," analysts note. However, despite the progress, challenges remain, including new fraud schemes and regulatory barriers.

This evolution underscores how the industry is adapting to regulators' requirements, making crypto not only an innovative but also a reliable asset for investors.