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Chainalysis Flags $75 Billion in Crypto Linked to Illicit Activity; Highlights Asset Recovery Potential

Chainalysis Flags $75 Billion in Crypto Linked to Illicit Activity; Highlights Asset Recovery Potential

Bitcoin leads illicit holdings as stablecoins rise, and governments could recover billions from criminal wallets.

Written by Rahul Dhingra, Edited by David Delima | Updated: 10 October 2025 16:01 IST

Chainalysis Flags $75 Billion in Crypto Linked to Illicit Activity; Highlights Asset Recovery Potential

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Cryptocurrency tied to scams and darknet markets offers unique recovery opportunities

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Highlights

$15 billion directly held by illicit crypto entities worldwide
Darknet operators control over $46 billion in digital assets
Blockchain transparency enables targeted law enforcement actions

Blockchain analytics company Chainalysis' latest projections have revealed that over $75 billion (roughly Rs. 6,65,000 crore) worth of cryptocurrency is linked to illegal activity, with a significant portion of that amount being recoverable through organised law enforcement action. The firm's latest report highlights how the transparent nature of blockchain networks could enable governments to identify and seize these assets, a development that may influence discussions about crypto reserves in countries like the US. The findings also reveal that around $15 billion (roughly Rs. 1,33,000 crore) in digital assets are directly held by illicit entities, while another $60 billion (roughly Rs. 5,32,000 crore) sits in wallets with downstream exposure to criminal sources.

Blockchain Transparency Opens New Avenues For Global Asset Recovery

The report also revealed that more than $46.2 billion (roughly Rs. 4,09,000 crore) in digital assets are collectively controlled by darknet operators and vendors. While Bitcoin remains the dominant cryptocurrency in these holdings, accounting for roughly 75 percent of the total value, the use of stablecoins and Ether has been rising in illicit transactions.

Chainalysis says the data highlights a new “asset forfeiture opportunity” for international authorities. The overlap between enforcement and reserve-building could become increasingly relevant, with initiatives like the US' proposed Strategic Bitcoin Reserve and Digital Asset Stockpile aiming to expand crypto holdings through budget-neutral means such as seizures. Jonathan Levin, Chainalysis co-founder and CEO, told Bloomberg that the findings "change how countries think about asset forfeiture potential."

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This convergence seems to be developing already, if recent law enforcement actions are any indication. Canadian authorities seized around $40 million (roughly Rs. 354.64 crore) in digital assets from the unregistered exchange TradeOgre earlier this year, sparking debate among crypto advocates about regulatory overreach. These instances, however, demonstrate how blockchain transparency allows governments to track and retrieve money more effectively than in traditional finance.

Despite the large nominal figure, Chainalysis emphasised that crypto-related crime accounts for a small portion of blockchain activity, or 0.14 percent of total transaction volume in 2024.

On the other hand, the United Nations Office on Drugs and Crime (UNODC) estimates that traditional financial systems launder up to 5 percent of the world's GDP each year. Analysts also suggest that crypto's public traceability often magnifies perceptions of crime, even as data points to declining illicit activity overall.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Crypto Crimes, Cryptocurrency, Bitcoin, Crypto News Today

Rahul Dhingra

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Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More