As the United States and other nations consider establishing cryptocurrency reserves, a recent report by Chainalysis reveals the possibility of recovering tens of billions in cryptocurrency linked to illegal activities.

In its report released Thursday, Chainalysis estimates that cryptocurrency balances associated with illicit undertakings exceed $75 billion. This total encompasses approximately $15 billion directly held by illicit actors and around $60 billion in wallets connected to those actors.

The firm noted that operators and vendors on the darknet control over $40 billion of these cryptocurrency assets.

Approximately 75% of the total illicit value is stored in Bitcoin (BTC), while stablecoins are gaining traction in this area.

Stolen assets represent the largest share of illicit cryptocurrency holdings. Source: Chainalysis

Chainalysis linked its findings to initiatives from the Trump administration aimed at creating a Strategic Bitcoin Reserve and Digital Asset Stockpile, which intend to increase federal crypto holdings via budget-neutral methods, potentially including asset forfeitures.

“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 emphasized.

Levin indicated to Bloomberg that these figures elevate the potential for asset forfeiture significantly, remarking, “It does change how countries think about that.”

Additionally, Canadian authorities recently confiscated approximately $40 million in digital assets from TradeOgre, a cryptocurrency exchange accused of operating unregistered and enabling money laundering. This action has drawn considerable backlash from the crypto community, raising concerns over potential regulatory overreach.

Blockchain Transparency and Perception of Crypto Crime

While cryptocurrency-related crimes have surged lately, including several high-profile hacks targeting major platforms, the overall prevalence remains comparatively low. According to Chainalysis’s 2025 Crypto Crime Report, illicit transactions constituted just 0.14% of all blockchain activities in 2024, reflecting a downward trend over the years.

Less than 1% of all crypto transaction volume is linked to illicit activity. Source: Chainalysis

In contrast, the United Nations Office on Drugs and Crime (UNODC) estimates that between 2% to 5% of global GDP is laundered via conventional financial systems.

Analysts suggest that the notable focus on crypto crime stems from the transparent nature of blockchain networks, which allow every transaction to be publicly traced. This visibility facilitates the detection of illicit activities and often results in more reports compared to crimes involving cash or traditional banking systems.

As an emerging technology, the crypto industry continues to experience intense regulatory scrutiny, further amplifying the perception of widespread misconduct.