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9B stablecoin transfers linked to illicit activity in 2024: Report

Cryptocurrency compliance firm Bitrace found that $649 billion worth of stablecoins flowed through addresses classified as high-risk in 2024, according to an April 29 report.

Bitrace defines high-risk blockchain addresses as those used by illegal entities to receive, transfer or store stablecoins.

Crypto compliance firms typically score crypto wallet addresses based on their likelihood of involvement in illicit activities. The higher the risk, the higher the likelihood of foul play, and the less likely compliant crypto businesses are to accept the assets.

Per the report, the amount accounted for roughly 5.14% of all stablecoin transaction volume in 2024. This is down 0.8% from 5.94% the previous year, but significantly higher than the 2.8% reported in 2022 and 1.63% in 2021.

$649B stablecoin transfers linked to illicit activity in 2024: Report
Proportion of high-risk stablecoin transactions. Source: Bitrace

Related: Americans lost $9.3B to crypto fraud in 2024 — FBI

Tron USDT tops high-risk transactions

Tron-based USDt (USDT) dominates high-risk stablecoin transactions, with Bitrace data indicating that well over 70% of the volume moved on the network. The remaining high-risk stablecoin transactions are mostly Ethereum-based USDt and a small amount of USDC (USDC).

A likely explanation for the prevalence of USDT is likely due to its larger market capitalization and adoption compared with other stablecoins. At the time of writing, CoinMarketCap shows that USDt has a market cap of over $148 billion, while USDC stands at over $62 billion.

Tron’s prevalence is not as easy to explain. Ethereum remains the more popular choice for most stablecoin users, with DefiLlama showing nearly $124.3 billion worth of stablecoins circulating on the network. Tron ranks second, with about $71 billion — almost 43% less than Ethereum.

When comparing USDT balances alone, Tron holds slightly more than Ethereum: 47.4% of USDT supply, versus Ethereum’s 45.44%.

$649B stablecoin transfers linked to illicit activity in 2024: Report
High-risk inflows by stablecoin type. Source: Bitrue

Related: Tether stablecoin issuer and Tron launch financial crime unit

Crypto gambling continues its rise

Bitrace also reported that in 2024, online gambling platforms processed $217.8 billion worth of stablecoins — a 17.5% increase over the previous year.

Once again, USDT also dominated this type of activity. Still, USDC’s market share is rapidly rising, clocking in at 13.36% in 2024.

$649B stablecoin transfers linked to illicit activity in 2024: Report
Stablecoin inflows to gambling platforms. Source: Bitrue

The data follows recent reports that crypto casinos generated more than $81 billion in revenue in 2024, even as regulators in key jurisdictions continued to block access to the platforms, according to a new report.

Magazine: Ridiculous ‘Chinese Mint’ crypto scam, Japan dives into stablecoins: Asia Express

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SEC says REX-Osprey staked SOL and ETH funds may not qualify as ETFs

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SEC says REX-Osprey staked SOL and ETH funds may not qualify as ETFs

SEC says REX-Osprey staked SOL and ETH funds may not qualify as ETFs

The SEC responded shortly after the issuers filed effective registration amendments for staked SOL and Ether exchange-traded funds.

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IMF raises concern over Pakistan’s Bitcoin mining power plan: report

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IMF raises concern over Pakistan’s Bitcoin mining power plan: report

IMF raises concern over Pakistan’s Bitcoin mining power plan: report

IMF questions Pakistan’s plan to allocate 2,000 megawatts of electricity for Bitcoin mining amid energy shortages and budget talks.

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‘No doubt’ UK will spend 3% of GDP on defence in next parliament, defence secretary says

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'No doubt' UK will spend 3% of GDP on defence in next parliament, defence secretary says

There is “no doubt” the UK “will spend 3% of our GDP on defence” in the next parliament, the defence secretary has said.

John Healey’s comments come ahead of the publication of the government’s Strategic Defence Review (SDR) on Monday.

This is an assessment of the state of the armed forces, the threats facing the UK, and the military transformation required to meet them.

Prime Minister Sir Keir Starmer has previously set out a “clear ambition” to raise defence spending to 3% in the next parliament “subject to economic and fiscal conditions”.

Mr Healey has now told The Times newspaper there is a “certain decade of rising defence spending” to come, adding that this commitment “allows us to plan for the long term. It allows us to deal with the pressures.”

A government source insisted the defence secretary was “expressing an opinion, which is that he has full confidence that the government will be able to deliver on its ambition”, rather than making a new commitment.

The UK currently spends 2.3% of GDP on defence, with Sir Keir announcing plans to increase that to 2.5% by 2027 in February.

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This followed mounting pressure from the White House for European nations to do more to take on responsibility for their own security and the defence of Ukraine.

The 2.3% to 2.5% increase is being paid for by controversial cuts to the international aid budget, but there are big questions over where the funding for a 3% rise would be found, given the tight state of government finances.

While a commitment will help underpin the planning assumptions made in the SDR, there is of course no guarantee a Labour government would still be in power during the next parliament to have to fulfil that pledge.

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From March: How will the UK scale up defence?

A statement from the Ministry of Defence makes it clear that the official government position has not changed in line with the defence secretary’s comments.

The statement reads: “This government has announced the largest sustained increase to defence spending since the end of the Cold War – 2.5% by 2027 and 3% in the next parliament when fiscal and economic conditions allow, including an extra £5bn this financial year.

“The SDR will rightly set the vision for how that uplift will be spent, including new capabilities to put us at the leading edge of innovation in NATO, investment in our people and making defence an engine for growth across the UK – making Britain more secure at home and strong abroad.”

Sir Keir commissioned the review shortly after taking office in July 2024. It is being led by Lord Robertson, a former Labour defence secretary and NATO secretary general.

The Ministry of Defence has already trailed a number of announcements as part of the review, including plans for a new Cyber and Electromagnetic Command and a £1bn battlefield system known as the Digital Targeting Web, which we’re told will “better connect armed forces weapons systems and allow battlefield decisions for targeting enemy threats to be made and executed faster”.

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PM Sir Keir Starmer and Defence Secretary John Healey on a nuclear submarine. Pic: Crown Copyright 2025
Image:
PM Sir Keir Starmer and Defence Secretary John Healey on a nuclear submarine earlier this year. Pic: Crown Copyright 2025

On Saturday, the defence secretary announced a £1.5bn investment to tackle damp, mould and make other improvements to poor quality military housing in a bid to improve recruitment and retention.

Mr Healey pledged to “turn round what has been a national scandal for decades”, with 8,000 military family homes currently unfit for habitation.

He said: “The Strategic Defence Review, in the broad, will recognise that the fact that the world is changing, threats are increasing.

“In this new era of threat, we need a new era for defence and so the Strategic Defence Review will be the vision and direction for the way that we’ve got to strengthen our armed forces to make us more secure at home, stronger abroad, but also learn the lessons from Ukraine as well.

“So an armed forces that can be more capable of innovation more quickly, stronger to deter the threats that we face and always with people at the heart of our forces… which is why the housing commitments that we make through this strategic defence review are so important for the future.”

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