River reports criminals prefer stablecoins over Bitcoin as illicit crypto use shifts dramatically

Bitcoin's share of illicit transaction volume has dropped from roughly 70% in 2020 to about 7%, while stablecoins now dominate criminal finance at 84%.

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Add us on Google by Editorial Team May. 31, 2026

The narrative that Bitcoin is the currency of choice for criminals is looking increasingly outdated. River, the Bitcoin-centric financial services company, posted on May 31 that criminals now prefer stablecoins over Bitcoin, a claim backed by data from blockchain analytics firms that paints a picture of a dramatic reversal in how digital assets are used for illicit purposes.

Bitcoin’s share of illicit transaction volume has cratered from around 70% in 2020 to approximately 7% by 2025, according to Chainalysis data. In that same period, stablecoins surged to account for roughly 84% of illicit transaction volumes.

Stablecoins like USDT solve the volatility problem neatly. They’re pegged to the US dollar, meaning a million dollars in USDT today is still worth roughly a million dollars tomorrow. Scams and fraud, which require stable pricing to operate reliably, have become heavily concentrated in stablecoin transactions. Sanctioned entities have gravitated toward stablecoins for the same stability reasons.

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Bitcoin still maintains a presence in ransomware payments and darknet marketplace transactions, where established infrastructure and relative anonymity tools built around Bitcoin still give it an edge.

The numbers tell a clear story

In 2024, stablecoins accounted for 63% of all illicit on-chain transactions, driven primarily by scams and blacklisted entities. By 2025, that figure climbed to 84%, according to analytics from both Chainalysis and TRM Labs.

Meanwhile, illicit crypto volumes overall have reportedly hit all-time highs, with stablecoins leading the surge.

What this means for investors

For Bitcoin holders, this data weakens one of the most common arguments used to justify restrictive Bitcoin regulation. But this puts stablecoin issuers squarely in the crosshairs. If 84% of illicit crypto volume flows through stablecoins, regulators are going to ask hard questions about compliance frameworks, freezing mechanisms, and issuer accountability.

Tether has been cooperating with law enforcement to freeze wallets tied to illicit activity, and both Chainalysis and TRM Labs have built extensive monitoring infrastructure around stablecoin flows.

The competitive landscape within stablecoins could also shift. Issuers that can demonstrate robust compliance and law enforcement cooperation may gain market share over those perceived as lax, particularly as the US moves toward formal stablecoin legislation.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.