The world witnessed an alarming escalation in cryptocurrency-related crimes in 2024. With digital asset adoption surging and financial technology rapidly evolving, blockchain has become both a revolutionary force for economic growth and a tool for illicit activity.
While the global crypto market continues to boom, with transaction volumes surpassing USD $10.6 trillion in 2024, up 56% from the previous year, the shadow economy of digital crime has grown increasingly sophisticated.
From high-profile ransomware attacks and terrorist financing to scams that wiped out millions in savings, global crypto crime has become an urgent concern. Asia, in particular, has emerged as a crucial battleground, where regulatory gaps, high digital adoption rates, and financial accessibility provide both opportunities and risks.
This report delves into the critical findings of the 2025 TRM Labs Crypto Crime Report, uncovering the tactics, scale, and impact of digital crimes affecting Asia and beyond.
The Scale of Unlawful Crypto Transactions in 2024
While overall illicit crypto activity has declined globally—accounting for just 0.4% of total transaction volume—this does not indicate that digital criminals are disappearing. Rather, they are evolving.
The report estimates that illicit crypto transactions amounted to USD $45 billion worldwide in 2024, a 24% drop from the previous year. However, historical trends suggest this figure is merely a baseline.
Adjusted figures from 2023 later revealed a massive upward revision of 69%, indicating that current 2024 estimates will likely follow the same trajectory.
Asia, as the largest crypto market, has seen a proportional increase in illicit activities. Cybercrime syndicates leverage the region’s high mobile penetration and relatively young, tech-savvy population to execute scams, exploitative trading schemes, and money laundering operations.
Terrorist Financing and Sanctions Evasion Saw The Rise of Digital Laundering
One of the most alarming trends identified in the 2024 report is the expansion of cryptocurrency use in terrorist financing. Globally, terrorist organisations like ISIS-K and Hamas have increasingly turned to digital assets to fund their operations.
While traditional financial systems remain the primary channel for terror financing, crypto’s anonymity and accessibility provide a powerful alternative.
In Asia, insurgent groups linked to extremist organisations have reportedly exploited blockchain networks to move funds undetected. In 2024, law enforcement traced a series of cryptocurrency transactions to local hawala networks, which facilitated money transfers between terrorist cells.
These digital transactions, often structured through stablecoins like USDT, circumvent traditional banking oversight and pose a critical national security risk.
Ransomware Hits an All-Time High
2024 also witnessed an unprecedented surge in ransomware attacks globally, with over 5,600 publicly reported cases. The financial toll has been devastating. Ransomware payments reached a record high, with one victim paying an astounding USD $75 million to the Dark Angels ransomware group.
Asia has been both a target and a base for cybercriminals engaging in ransomware operations. A significant number of cyberattacks have targeted companies in China, Japan, South Korea, and India. Mosst who are particularly in financial services, e-commerce, and healthcare.
Conversely, experts warn that parts of the region have become safe havens for ransomware operators. All due to weak enforcement mechanisms and the difficulty of tracking blockchain-based transactions.
Additionally, criminals are moving beyond traditional Bitcoin payments to more complex laundering strategies, including cross-chain bridges that obscure transaction histories. This shift has made it increasingly difficult for authorities to freeze illicit funds in real time.
USD $2.2 Billion Stolen Through Crypto Heists
Hacking remains a persistent threat in the crypto industry, with USD $2.2 billion stolen in 2024 alone. This marks a 17% increase from the previous year and underscores the vulnerabilities in digital asset security.
A majority of these funds were stolen through private key compromises, phishing schemes, and decentralised finance (DeFi) exploits.
Asia-based crypto exchanges have not been immune. Several platforms in Singapore, South Korea, and Hong Kong reported security breaches, leading to millions in customer losses.
As North Korean cybercriminals continue to target DeFi protocols, Asian firms must remain vigilant against increasingly sophisticated attack vectors.
Notably, North Korea accounted for nearly 35% of all stolen crypto in 2024. It has since funnelling an estimated USD $800 million through illicit transactions. The country’s state-backed hacking groups exploit DeFi weaknesses, steal private keys, and use multiple blockchain networks to launder funds before they can be intercepted.
Illicit Drug Trade Brings Another Headache Alongside Crypto Scams
Despite a 40% decline in total scam-related transactions, fraud remains a formidable force in the crypto landscape. In Asia, investment scams, Ponzi schemes, and romance frauds—also known as “pig butchering” scams—continue to target unsuspecting retail investors.
While fewer large-scale Ponzi schemes emerged in 2024, scammers have shifted tactics. They are currently leveraging AI-driven chatbots and deepfake technology to create more convincing frauds.
Reports indicate that investors in China, India, and the Philippines lost upwards of USD $200 million to crypto-related phishing scams and fake investment platforms over the year.
At the same time, cryptocurrency has also found a role in the global drug trade. According to the report, online illicit drug sales surged by 19% in 2024, surpassing USD $2.4 billion globally.
While traditional darknet marketplaces have seen a decline in activity, drug dealers have moved operations to encrypted messaging apps like Telegram and Signal.
Authorities have also detected crypto payments being used for synthetic drug precursor transactions, particularly fentanyl manufacturing. China, long known as a major exporter of drug precursors, has also faced increasing scrutiny over its role in facilitating these transactions.
The Battle for Crypto’s Future
The global crypto crime landscape reflects a larger phenomenon. One where innovation and illicit activity are locked in a high-stakes battle for the future of digital finance.
While regulatory efforts and blockchain intelligence tools have made progress in curbing some illicit activity, the adaptability of cybercriminals remains a pressing concern.
The reliance on stablecoins for terror financing, the increasing sophistication of ransomware attacks, and the continued exploitation of DeFi vulnerabilities all point to a critical need for stronger oversight.
Yet, regulatory measures alone will not suffice. A multi-pronged approach is crucial to safeguarding the future of the crypto ecosystem. It must include one that includes financial literacy, better consumer protection, enhanced cybersecurity measures, and deeper international collaboration.
As Asia and the globe continue their digital transformation, authorities must act decisively. It is a must to prevent themselves from becoming a haven for crypto-related crime.
Without proactive intervention, the global financial system risks being ensnared in a cycle of financial crime that could undermine both investor confidence and economic stability.
The battle against crypto crime is far from over, but the lessons of 2024 should serve as a stark warning.
It is one that demands urgent and sustained action.
Featured image credit: Edited from Freepik
