Chainalysis reports that the vast majority of cryptocurrency transactions (approximately 99.6%) are for legitimate purposes. Illegal cryptocurrency trading volume accounted for only 0.34% of all cryptocurrency trading volume in 2023, which is lower than the proportion in 2022 (0.42%) and a significant decrease from the proportion in 2019 (1.3%). The report only focuses on funds stolen in cryptocurrency hacks and those identified as illegitimate addresses.
Despite the decline, it’s worth stressing that cryptocurrency-related crime remains small compared to illicit activity within the wider financial industry. (Bitcoinist)