Illicit entities hold nearly US$15 billion in crypto, while downstream wallets linked to criminal activity exceed US$60 billion.
Chainalysis released new research revealing that over US$75 billion in crypto is currently held in wallets linked to criminal activity, presenting an unprecedented opportunity for law enforcement agencies to identify, freeze, and recover illicit digital assets.
According to the report, illicit entities themselves hold close to US$15 billion in cryptocurrency, while downstream wallets contain an additional US$60 billion, which underscores the scale and concentration of digital assets on public blockchains.
The research shows that stolen funds account for the majority of criminal holdings, while darknet market administrators and vendors control over US$40 billion in on-chain value. Bitcoin continues to dominate the illicit asset landscape, representing about 75% of total holdings, and a small number of wallets hold the majority of funds.
Furthermore, Chainalysis’s analysis reveals a sharp drop in direct transfers from around 40% in 2021–2022 to 15% in mid-2025. Criminals are increasingly turning to mixers, cross-chain bridges, and transient wallet networks to obscure fund origins and complicate tracing.
The report also provides key insights into timing for enforcement action, showing that the lifespan and liquidation patterns of illicit entities vary significantly by crime type. Different assets also display distinct post-operation behaviours. Stablecoins are cashed out most rapidly, while bitcoin often remains in wallets for over a year.
With the establishment of the Strategic Bitcoin Reserve (SBR) and Digital Assets Stockpile (DAS) in the United States, governments are increasingly aware of the potential to recover digital assets at scale.
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