Crypto Crime Trends: Why Lawmakers Need to Catch Up

I’ve been working in crypto long enough to see plenty of ugly headlines. But what happened over the past was something different. The data coming out now isn’t just bigger than usual, it’s showing clear signs that the whole playbook of crypto crime is changing. The tools are sharper, the scams are smarter, and the holes in our legal systems are wider than ever.

So if you’re in this space, whether you’re building, moving capital, or just holding a few tokens, it’s probably a good time to take a step back and really understand how fast things are shifting, and what that actually means.

Crypto Crime Is Bigger Than the Numbers Suggest

Let’s start with the baseline: $40.9 billion in crypto-related illicit activity was reported for 2024.

But here’s the thing, those figures are just the starting point. Historically, the final numbers always end up significantly higher once more wallets are flagged, exchanges release fresh reports, and investigators trace things more clearly. Back in 2023, the early numbers more or less doubled by the time deeper forensics came in. So 2024? Could easily top $51 billion. A sign that the pace and structure of crypto crime is outgrowing the current legal frameworks that are supposed to handle it. I’ve had direct conversations with folks in enforcement who say the same thing: without better legal tools and reporting standards, there’s a ceiling on what they can realistically do.

That gray zone between tech innovation and law enforcement has gone from awkward to dangerous. And if regulators don’t move quickly to clear things up, that gap is only going to get worse.

North Korea Keeps Breaking Records

Out of the $2.2 billion in crypto stolen in 2024, more than 60% came from one place: North Korea.

That’s about $1.34 billion in stolen digital assets, and no, these aren’t “quick in, quick out” hacks. These are long-term, highly coordinated campaigns. They’ve gotten so bold that some operatives are even embedding themselves in crypto firms under fake resumes, working from the inside, gathering access, and then pulling off massive heists.

We’re not talking about a few clever coders here. These are state-backed teams, with resources, strategy, and patience. They’re hitting both decentralized projects and centralized exchanges, usually by going after credentials and private keys, less technical exploit, more insider access.

These operations are now part of broader geopolitical problems, fueling sanctioned governments and undermining global financial pressure campaigns.

AI Is Supercharging Old Scams

“Pig butchering” scams have been around for years, but 2024 saw them hit a whole new level.

These are the long-game cons, fraudsters build trust with someone over time, either by posing as a romantic partner or business opportunity. They talk, bond, share stories. Then, weeks or months in, they start guiding their target into some crypto investment platform. One that, surprise, turns out to be a scam.

In 2024, these scams were up almost 40%, but what really changed is the how. AI has made them faster, harder to spot, and way more convincing.

We’re seeing:

• Deepfake videos of known financial influencers,

• Voice cloning,

• Super-personalized phishing messages,

• Even AI-generated “faces” that pass KYC checks.

And yes, they’re going after older people more than ever, convincing them to send payments through crypto ATMs, which are fast, final, and practically impossible to reverse. It’s manipulation meets automation, and it’s incredibly effective.

Ransomware’s Changing, Not Disappearing

Here’s one bit of news that’s at least less bad: ransomware payments dropped in 2024, down to $813 million from $1.25 billion in 2023.

That sounds like a win, and to some extent, it is. A lot of companies are getting better at refusing to pay, or at least negotiating smaller demands. And enforcement has been working, several big ransomware groups were taken down, including LockBit and BlackCat.

But the criminals? They’re still in business. They’re just switching names.

A new group, RansomHub, is now leading the charge after absorbing people from shut-down outfits. And they’ve adapted by using cross-chain swaps to launder money instead of the mixers that regulators now keep close tabs on.

So while the dollar amounts are lower, the ecosystem is still very much alive, and just getting smarter.

Market Manipulation Is Practically a Service Now

Fake trading activity is so common now that it’s almost become a cottage industry.

In 2024, over 23,000 crypto addresses were linked to shady or manipulative trading tactics, and together they accounted for roughly $2.57 billion in fake volume.

Platforms like Volume.li even sell “engagement bots” that simulate real market interest, pumping up token prices just enough to lure in real investors. One scammer used over 22,000 wallets to fake $313 million in volume alone.

These aren’t rug-pull memes or basement hobbyists. These are organized, often well-funded operations, running big, complex scams designed to move prices artificially and dump assets at the top. And it’s retail investors who usually end up holding the bag.

Darknet Markets Won’t Die, They Just Rebrand

Even with some major darknet takedowns, the marketplace for illegal goods is alive and thriving, just under new names.

Kraken DNM has now taken over as the top Russia-based darknet market. Abacus Market, meanwhile, doubled its revenue in 2024 by focusing more directly on Western users.

And what are these sellers using to get paid? Not Bitcoin anymore. Monero has become the default in these circles because of its built-in privacy tools, which hide transaction data from public view.

Vendors have gotten slick, too, frequently changing payment systems, moving to new servers, and staying just agile enough to avoid getting caught. It’s basically a cat-and-mouse game, and right now, the cats are lagging behind.

So What Now?

The core takeaway here is pretty simple: the threats are changing fast, and enforcement is falling behind. And not because agencies don’t care, because they don’t have the tools.

Crypto itself isn’t the problem. It’s the lack of consistent, modern regulation that lets all this mess grow. Without updated frameworks, stronger cross-border collaboration, and real oversight, these issues aren’t going to slow down.

If you’re a user: be careful. Don’t send money to platforms you haven’t researched. Be skeptical of unsolicited “investment opportunities,” especially if romance is involved. And remember, markets that shoot up overnight almost always come back down just as fast.

If you’re a policymaker or regulator: the window to act is closing. Every delay in clear crypto rules gives more space for bad actors to grow. This isn’t about slowing innovation, it’s about making sure it doesn’t collapse under the weight of unchecked criminal activity.

Crypto will still do what it promised: open up access, move money faster, shift control away from the usual power centers. But it’s not going to get there if we keep pretending crime isn’t part of the equation.