Binance: $75B+ illicit crypto stuck on-chain, laundering slows

Illicit crypto funds on-chain topped $75B in 2025, up 28%, but still under 1% of total volume. Stronger compliance and blockchain transparency make laundering harder and funds easier to trace.

Binance Research reveals that illicit crypto transactions make up less than 1% of total on-chain volume. However, the absolute value of illicit funds stuck on blockchain networks surpassed $75 billion in 2025, marking a 28% increase from the previous year. This rise is linked to enhanced monitoring and compliance, which make laundering more difficult. Blockchain’s transparency and immutable records enable investigators to trace illicit assets across wallets. Tools like Know Your Transaction (KYT) and Know Your Customer (KYC) further block conversion to cash. Stablecoin issuers can freeze suspicious funds, and law enforcement can seize them directly. Crypto mixers have limited capacity, with $1 billion taking over 100 days to process. Despite the large sum, illicit activity remains a minor part of the crypto ecosystem, underscoring the effectiveness of compliance and blockchain analysis.