TRM Labs: Crypto Crime Value Hits Record High in 2025 Despite Falling On-Chain Share

On January 29, blockchain intelligence firm TRM Labs released a new report indicating that while the proportion of illicit activity in on-chain transactions continues to decline, the total value of cryptocurrency-related crime measured in U.S. dollars reached a record high in 2025.
According to the report, the scale of crypto crime is expected to reach $158 billion in 2025, representing a 145% increase from approximately $64.5 billion recorded in the previous year. The sharp rise in nominal value reflects the broader expansion of the digital asset market rather than an increase in criminal intensity.
TRM Labs data shows that illegal transactions accounted for only 1.2% of total on-chain transaction volume in 2025, down from 1.3% in 2024 and significantly below the 2023 peak of 2.4%. This trend highlights improving compliance, monitoring, and risk controls across the blockchain ecosystem.
An independent estimate from Chainalysis supports this view, forecasting illicit transaction volumes of approximately $154 billion in 2025, representing less than 1% of total on-chain activity. Together, the findings suggest that although absolute crime figures are rising alongside market growth, the relative share of illicit funds is steadily being diluted.
The report underscores the dual reality of a rapidly expanding digital asset ecosystem: larger transaction volumes inevitably raise absolute figures, while enhanced transparency and regulation continue to reduce the proportional impact of illegal activity.