As the United States and other countries consider the prospect of building national cryptocurrency reserves, new research from Chainasis suggests that governments may already have access to tens of billions of dollars in on-chain recoverable assets — a development that could intersect with those reserve discussions.
In a a report Published on Thursday, Chainalysis estimated that cryptocurrency balances linked to illicit activity exceed $75 billion. This total includes nearly $15 billion held directly by illicit entities and more than $60 billion in portfolios exposed to those entities.
The blockchain analytics company said Dark web market Operators and vendors control more than $40 billion in crypto assets on the blockchain.
About 75% of the total illicit value is held in Bitcoin (Bitcoin), although stablecoins account for an increasing share of this activity.
Chainalysis linked its findings to the US Trump administration’s creation of a strategic Bitcoin reserve and stockpile of digital assets. These initiatives aim to expand the Fed’s cryptocurrency holdings by Budget neutral meanswhich may include asset confiscation.
“[T]The cryptocurrency ecosystem presents law enforcement with an unprecedented opportunity: Billions of dollars in illicit proceeds reside on public blockchains and could theoretically be seized if authorities can coordinate the action, the report said.
Jonathan Levine, Co-Founder and CEO of Chainalysis, said Bloomberg The numbers raise “the possibility of asset confiscation to a completely different level,” adding: “It changes the way countries think about it.”
elsewhere, The Canadian authorities were recently arrested About $40 million in digital assets from TradeOgre, a cryptocurrency exchange accused of operating without registration and facilitating money laundering. This action drew strong criticism from members of the cryptocurrency community, who argued that the move crossed regulatory boundaries.
Related to: Bybit hacker launders 100% of stolen cryptocurrencies worth $1.4 billion in 10 days
Blockchain transparency distorts the perception of cryptocurrency crime
While cryptocurrency crimes have increased in recent years, including… Several high-profile hacks By targeting exchanges and major service providers, its overall scope remains small.
According to Chainalysis Cryptocrime Report 2025Illicit transactions accounted for only 0.14% of total blockchain activity in 2024, a number that continues the downward trend from previous years.
In contrast, the United Nations Office on Drugs and Crime (UNODC) Estimates That 2% to 5% of global GDP is laundered through traditional financial systems.
Analysts say one reason cryptocurrency crimes attract disproportionate attention is the transparency of blockchain networks, where every transaction can be publicly tracked. This visibility makes illicit activities easier to detect and therefore easier to report than crimes involving cash or traditional banking systems.
As a relatively new technology, the cryptocurrency ecosystem has also encountered Intensive regulatory and enforcement scrutinywhich amplified perceptions of widespread wrongdoing.
Related to: Blockchain security must be localized to stop the wave of cryptocurrency crime in Asia
