Crypto crime is dropping, and nowhere faster than on blockchain often called out for illicit use, TRON, according to a preview of TRM Labs’ 2024 Crypto Crime Report.
Illicit onchain volume is down 24% since 2023 to $45 billion, according to the blockchain intelligence company, and represents just 0.4% of overall crypto transactions. This is despite crypto transaction volume growing 56% last year to over $10.6 trillion.
The firm attributes this drop to increased efforts to curb illegal activities by law enforcement and crypto industry participants. Nowhere is this more apparent than on TRON, the blockchain founded by prominent founder Justin Sun which recently launched a partnership looking to “identify and disrupt criminal networks” alongside USDT and TRM Labs.
Together with law enforcement agencies around the world, the so-called T3 Financial Crime Unit claims to have frozen around $130 million USDT worth of assets connected to suspected crimes. The group has monitored over $3 billion worth of USDT transactions since spinning up in August.
“TRON experienced the most significant decline in illicit activity, with illicit volume dropping by $6 billion and the proportion of such activity nearly halving,” the company wrote. That said, TRON remains the most-used blockchain for criminal activity, accounting for 58% of total illicit volume compared to 24% on Ethereum and 12% on Bitcoin.