- Chainalysis estimates $75 billion in cryptocurrency is connected to illicit activity, much of which may be recoverable through coordinated law enforcement actions.
- Around $40 billion is held by darknet operators, with Bitcoin accounting for 75% of total illicit funds.
- The findings come as governments, including the U.S., explore national crypto reserves, potentially linking recovery efforts with sovereign digital asset strategies.
Blockchain analytics firm Chainalysis revealed that more than $75 billion worth of cryptocurrencies are tied to illicit activities and a significant portion of it could be seized or recovered by governments. The report, published Thursday, highlights how these assets, visible on public blockchains, offer an unprecedented opportunity for law enforcement-led asset recovery.
According to the analysis, around $15 billion in crypto is directly controlled by illicit entities, while an additional $60 billion sits in wallets indirectly connected to them. The report also noted that darknet market operators and vendors collectively control over $40 billion worth of digital assets.
Chainalysis found that Bitcoin (BTC) remains the dominant currency for illicit transactions, accounting for roughly 75% of the total, though stablecoins have recently become more prevalent in criminal use cases.
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The findings arrive as the United States and other nations consider forming official cryptocurrency reserves, with discussions gaining traction under the Trump administration’s Strategic Bitcoin Reserve and Digital Asset Stockpile initiative. These programs are designed to build crypto reserves through budget-neutral measures, including asset forfeitures from seized digital funds.
The cryptocurrency ecosystem presents law enforcement with an unprecedented opportunity: billions of dollars in illicit proceeds are sitting on public blockchains and are theoretically seizable if authorities can coordinate action,” the report said.
Jonathan Levin, co-founder and CEO of Chainalysis, told Bloomberg that the scale of recoverable funds “changes how countries think about asset forfeiture potential,” hinting at its influence on emerging national digital asset policies.
Governments explore asset recovery and reserve strategies
Recent actions by global authorities underline how crypto enforcement and reserve-building are beginning to overlap. In one notable case, Canadian authorities seized $40 million in digital assets from TradeOgre, a crypto exchange accused of operating without registration and enabling money laundering.
The move drew criticism from crypto advocates, who argued that it demonstrated overreach and threatened decentralization principles. However, analysts believe that such enforcement actions may accelerate global discussions on how recovered crypto assets could contribute to public reserves or financial stabilization strategies.
Blockchain transparency reshapes perceptions of crypto crime
Despite the large nominal figure cited in the report, Chainalysis emphasized that crypto-related crime remains a very small fraction of total blockchain activity. The 2025 Crypto Crime Report found that only 0.14% of crypto transactions in 2024 were linked to illicit activity continuing a downward trend.
By comparison, the United Nations Office on Drugs and Crime (UNODC) estimates that 2% to 5% of global GDP is laundered annually through traditional financial systems, far surpassing crypto’s share.
Experts suggest that blockchain transparency makes crypto crime appear larger than it is, since every transaction is traceable allowing for easier detection and public reporting. This visibility, coupled with intense regulatory and media scrutiny, amplifies the perception of widespread wrongdoing, even as the data shows otherwise.
As governments increasingly consider crypto not just as a risk but as an opportunity, Chainalysis’ findings may shape how they approach digital asset regulation, enforcement, and strategic accumulation in the years ahead.
