Trm Report: Tron Blockchain Accounts for 45% of Illegal Crypto Volume by 2023
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TRM Labs data shows that in 2023, the volume of illegal cryptocurrencies fell by a third, from $49.5 billion in 2022 to $34.8 billion. However, of all crypto fraud cases in 2023, the TRON blockchain accounted for 45%, up from 41% in 2022.
A new report from TRM’s Blockchain Intelligence team highlighted the key trends in illicit crypto transactions through 2023 .
Criminals have managed to capture $34 billion worth of cryptocurrencies, despite a 9% year-over-year decline in total illicit cryptocurrencies from 2022 to 2023.
The report, titled “The Illicit Crypto Economy,” stated also found that almost half of all illegal crypto volume (45% in 2023) took place on the TRON blockchain. This was followed by the Ethereum blockchain with 24% and the Bitcoin blockchain with 18%.
Additionally, the stablecoin Tether (USDT) recorded the largest illegal volume last year at $19.3 billion. “Approximately 1.63% of Tether volume was linked to illicit activity through TRM, compared to 0.05% of USDC,” it said.
When asked about the factors that make the TRON blockchain a potential breeding ground for perpetrators, Angela Ang, senior policy advisor at TRM, told Cryptonews that “one of the reasons for TRON’s popularity is its low transaction fees and its could be high speed.” This makes it cheap and quick to launder funds, she added.
“The availability of stablecoins like USDT on TRON could be another factor. For example, we know that USDT on TRON is the currency of choice for terrorist financing companies.”
Cryptocrime reduction observed in 2023
While the damage to the TRON blockchain was enormous, 2023 saw a significant decrease in the Volume of illegal funds. There was a 30% decline from $49.5 billion in 2022.
Additionally, sanctions volume was the largest driver of the overall decline last year. The crypto value associated with sanctioned companies fell by 30% from $25.4 billion in 2022 to $16.2 billion in 2023.
Additionally, crypto hacks occurred and exploits fell dramatically by 50% from $3.7 billion in 2023 to $1.8 billion in 2022. On average, $10 million was compromised in each hack in 2023, down from $21 million US dollars in 2022, it said.
“Many factors are likely to have contributed to the decline in crypto crime in 2023, including increased corporate vigilance, fraud awareness among the general public, and pure coincidence,” the report says.
