Tron blockchain leads in 45% of 2023’s illicit crypto transactions


  • Tron blockchain hosts 45% of 2023’s illicit crypto transactions.
  • Ethereum and Bitcoin follow with 24% and 18% respectively.
  • Over $34 billion in cryptocurrencies linked to criminal activities.


TRM Labs has shone a fresh light on the field of illicit cryptocurrency transactions of 2023. The findings indicated that the Tron blockchain accounted for 45% of all scamming activities. This is 41% better than the previous year. The Ethereum and Bitcoin blockchains followed, 24% and 18% respectively. TRM Labs analysis illustrates that there is a large market for illicit transactions on Tron, thereby affirming the platform’s role in the digital currency underworld.

The research called “The Illicit Crypto Economy” demonstrates the transfer of more than $34 billion in criminal-externalized cryptocurrencies. Nevertheless, the total decrease in illicit crypto volumes was 9%. It is not a too-shabby number. The report highlights the increasing worry about the use of cryptos in fraudulent activities. It highlights the requirement of more stringent supervision and controls on such types of trading.

Tron’s role in crypto fraud exposed

Stablecoins, especially Tether (USDT), are central to illegal cryptocurrency activities. The report shows that Tether accounted for the biggest volume of illicit transactions last year, totaling $19.3 billion. This is about 1.63% of the total volume of Tether, while the number for USDC, another popular stablecoin, is 0.05%. The tendency of USDT on the Tron blockchain, especially on the part of entities participating in terrorism financing, emphasizes the difficulty associated with controlling and monitoring the flow of digital currencies.

Angela Ang, a senior policy advisor at TRM, attributes Tron’s attractiveness to its low transaction fees and high speed. These features facilitate the quick and cost-effective laundering of funds, making Tron a favored blockchain among perpetrators. The availability of USDT on Tron further contributes to its popularity for illicit purposes. The findings call attention to the urgent need for enhanced security measures and regulatory frameworks to address these issues.

The decline in overall illicit crypto volumes

Despite Tron’s dominance in illegal transactions, the amount of illegal money in all cryptocurrencies decreased significantly in 2023. The total illicit turnover was reduced from $49.5 billion in 2022 to $34.8 billion, which is 30%. Cryptocurrencies owned by the entities under sanctions fell from $25.4 billion to $16.2 billion by 30%.

According to the report, many factors are responsible for the reduction of crypto crime, such as businesses becoming more careful, people have become more aware of scams, and luck. Security improvements in regard to cryptocurrencies and regulatory initiatives cause a significant decline in the volume of illegal money. The results underline the importance of perpetual vigilance and creativity in the fight against cryptocurrency-based fraud and illicit activities.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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