Blockchain transparency is rapidly becoming the ultimate deterrent for crypto-criminals. A new analysis by Binance Research suggests that more than $75 billion in illicit funds are visible and traceable onchain.
According to the findings, illicit crypto activity continues to account for less than 1% of total transaction volume, but criminal balances trapped onchain have steadily increased since 2016.
“In 2025, the figure rose another 28% vs 2024 because less of it is successfully laundered,” Binance Research stated. “The bottleneck is structural, and it’s getting worse for bad actors.”
Compliance systems tighten the exit routes
Binance explained that crypto laundering has become increasingly difficult due to the growing use of KYT monitoring, KYC verification, stablecoin freezing tools, and direct law enforcement intervention.
“KYT screening flags wallets at entry. KYC blocks them at off-ramps. Stablecoin issuers freeze balances. Law enforcement seizes directly,” Binance Research noted.
The firm added that blockchain’s immutable transaction history allows investigators to follow illicit funds even after they move across multiple wallets.
Illicit funds move beyond original wallets
Binance Research highlighted that over 80% of illicit funds no longer remain in the original crime-linked wallet addresses. Instead, assets often move through downstream wallets, although every transfer remains permanently recorded onchain.
“The ledger remembers every hop,” the research team stated. “Traceability doesn’t stop at the first wallet. It follows the money indefinitely.”
Binance also said that privacy tools like Wasabi Wallet and CryptoMixer are no longer scalable solutions for modern cyber-heists. Currently, these platforms process a combined average of only $10 million in daily volume. “If you stole $1 billion, it would take more than 100+ days just to attempt to obscure it,” the report explained.
Previously reported similar trends
The findings align with earlier data released by Chainalysis in October 2025. The data estimated that wallets linked directly or indirectly to criminal activity held over $75 billion in crypto assets, including more than $40 billion tied to darknet market operators and vendors.
The report also found that Bitcoin accounted for nearly 75% of illicit balances, although stablecoins and Ether have continued gaining share over time.
The latest findings come just days after Binance revealed that it is deploying more than 100 AI models to combat AI-powered crypto scams.According to the exchange, its AI systems intercepted 22.9 million scam attempts in Q1 2026 and helped protect 5.4 million users over the past year.
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