The Tron (TRX) blockchain technology has achieved the largest reduction in illicit cryptocurrency activity, a new report from TRM Labs says. Overall, the volume of illegal transfers decreased by 24%, reaching $45 billion. Although cryptocurrencies have been criticized for providing technical pathways to illicit activity, this represents only 0.4% of total cryptocurrency transfers.

Tron (TRX) is seeing the largest decline in illicit cryptocurrency transfers, the report says

In 2024, the Tron Chain (TRX) saw the volume of illicit transfers decrease by $6 billion. It equates to “halving” the proportion of this activity in the total blockchain sales volume Cryptocrime Report 2024 says TRM Labs. Meanwhile, Tron (TRX) remains responsible for 58% of illegal cryptocurrency transactions.

In this list, Tron (TRX) is accompanied by Ethereum (24% of illicit volume), Bitcoin (12%), Binance Smart Chain and Polygon (3% each). Analysts say this reflects the continued preference for blockchains that have low transaction fees and popular smart contracts and stablecoins. As such, the epicenter of illicit activity in the cryptocurrency space has migrated from privacy-focused cryptocurrencies such as Monero (XMR) and ZCash (ZEC).

Justin Sun, founder of TRON (TRX), appreciates this achievement and is optimistic about the possibility of anti-fraud cooperation with TRM Labs and USDT Tether issuer in the T3 FCU alliance launching in Q3 2024:

The numbers speak for themselves We've already seen great success for T3 FCU...and this is just the beginning.

In total, the amount of illicit funds sent via cryptocurrency transfers to sanctioned countries and entities, operations with blocked-listed accounts and fraud-related funds were the three largest groups.

$2,200,000,000 USD stolen in cryptocurrency hacks in 2024

Flows to sanctioned entities fell to $14.8 billion equivalent as the US Office of Foreign Assets Control imposed sanctions on 86 cryptocurrency addresses linked to certain jurisdictions and groups.

Fraud-related transactions fell by 40% in 2024 but still totaled more than $10.4 billion. TRM Labs experts attribute this trend to the decline of Ponzi schemes globally.

In contrast, selling illicit drugs via hacking into cryptocurrency and blockchain services are two categories that gained momentum in 2024. Hackers moved $2.2 billion in funds, while dark web drug markets processed $2.4 billion. North Korean hackers may still be behind $800 million in funds transferred from compromised services.