Key Notes
- Illicit crypto flows to exchanges dropped from $14B annually to $7B in H1 2025 as criminals avoid fiat conversion.
- Darknet administrators control over $46 billion in digital assets, representing the majority of illicit blockchain holdings.
- Coordinated government seizures could strengthen national treasuries as countries establish strategic crypto reserves.
Blockchain analytics firm Chainalysis says more than $75 billion in illicit crypto sits untouched across public blockchains.
According to the firm’s latest report, criminal-linked wallets currently hold nearly $15 billion in digital assets, with another $60 billion in wallets connected indirectly to scams, hacks, or darknet markets.
Criminal wallet balances | Source: Chainalysis
Chainalysis also found darknet administrators alone control over $46 billion in crypto, accounting for the bulk of the shadow economy.
While Bitcoin
BTC
$121 297
24h volatility:
0.8%
Market cap:
$2.42 T
Vol. 24h:
$71.00 B
remains the dominant asset held by illicit actors by value, Ethereum
ETH
$4 350
24h volatility:
2.4%
Market cap:
$525.63 B
Vol. 24h:
$41.12 B
and stablecoin balances have grown rapidly due to their rising adoption and relative price stability.
Governments Could Target Illicit Crypto For Strategic Reserves
Chainalysis data shows inflows from illicit sources to centralized crypto exchanges (CEXs) have averaged $14 billion annually since 2020 but are trending downward. In the first half of 2025 alone, about $7 billion in illegal crypto funds hit exchanges, a sharp decline from 2022 levels.
Illicit Fund Flows on Centralized Exchanges | Source: Chainalysis
The report attributes this to criminals increasingly using crypto as a payment method and store of value, avoiding fiat conversion. Direct transfers to exchanges have plummeted from 40% in July 2022 to 15% in 2025, as illicit actors turn to crypto mixers and cross-chain bridges.
Stablecoins, which can be frozen by issuers, are the least concentrated, as criminals diversify holdings to avoid total losses from asset freezes.
Trump issued executive orders to establish the US Strategic Bitcoin Reserve (SBR) and Digital Asset Stockpile (DAS), creating frameworks for the government to confiscate and manage seized crypto funds.
With sovereign nations like El Salvador and Bhutan officially adopting crypto reserves in recent years, Chainalysis argues that coordinated seizures of illicit crypto could strengthen the national treasury.
The firm has already helped global authorities including Spain and the US seize $12.6 billion in illegal funds through forensic investigations.
Maxi Doge Presale Nears $3M as Chainalysis Investigates Illicit Actors
As Chainalysis investigations aid governments to clamp down on illicit actors, improved market sentiment has seen traders rotate toward early-stage projects like Maxi Doge (MAXI), a meme-driven ecosystem offering traders up to 1000% in leverage.
Maxi Doge Presale
The Maxi Doge presale has raised over $2.7 million of its $3 million target, underscoring strong retail demand ahead of its official launch. Currently priced at $0.00026, early investors can still secure MAXI tokens via the official presale website before the next price tier activates in 48 hours.
next
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Ibrahim Ajibade is a seasoned research analyst with a background in supporting various Web3 startups and financial organizations. He earned his undergraduate degree in Economics and is currently studying for a Master’s in Blockchain and Distributed Ledger Technologies at the University of Malta.
Ibrahim Ajibade on LinkedIn
