Key Notes

• Illicit crypto flows to exchanges dropped from $14B annually to $7B in H1 2025 as criminals avoid fiat conversion.
• Darknet administrators control over $46 billion in digital assets, representing the majority of illicit blockchain holdings.
• Coordinated government seizures could strengthen national treasuries as countries establish strategic crypto reserves.

Blockchain analytics firm Chainalysis says more than $75 billion in illicit crypto sits untouched across public blockchains.

According to the firm’s latest report, criminal-linked wallets currently hold nearly $15 billion in digital assets, with another $60 billion in wallets connected indirectly to scams, hacks, or darknet markets.

Chainalysis also found darknet administrators alone control over $46 billion in crypto, accounting for the bulk of the shadow economy.

While Bitcoin

BTC
$120 823



24h volatility:
2.5%


Market cap:
$2.41 T



Vol. 24h:
$70.07 B



remains the dominant asset held by illicit actors by value, Ethereum

ETH
$4 323



24h volatility:
4.7%


Market cap:
$521.51 B



Vol. 24h:
$43.19 B



and stablecoin balances have grown rapidly due to their rising adoption and relative price stability.

Governments Could Target Illicit Crypto For Strategic Reserves

Chainalysis data shows inflows from illicit sources to centralized crypto exchanges (CEXs) have averaged $14 billion annually since 2020 but are trending downward. In the first half of 2025 alone, about $7 billion in illegal crypto funds hit exchanges, a sharp decline from 2022 levels.

The report attributes this to criminals increasingly using crypto as a payment method and store of value, avoiding fiat conversion. Direct transfers to exchanges have plummeted from 40% in July 2022 to 15% in 2025, as illicit actors turn to crypto mixers and cross-chain bridges.

Stablecoins, which can be frozen by issuers, are the least concentrated, as criminals diversify holdings to avoid total losses from asset freezes.

Trump issued executive orders to establish the US Strategic Bitcoin Reserve (SBR) and Digital Asset Stockpile (DAS), creating frameworks for the government to confiscate and manage seized crypto funds.

With sovereign nations like El Salvador and Bhutan officially adopting crypto reserves in recent years, Chainalysis argues that coordinated seizures of illicit crypto could strengthen the national treasury.

The firm has already helped global authorities including Spain and the US seize $12.6 billion in illegal funds through forensic investigations.

Maxi Doge Presale Nears $3M as Chainalysis Investigates Illicit Actors

As Chainalysis investigations aid governments to clamp down on illicit actors, improved market sentiment has seen traders rotate toward early-stage projects like Maxi Doge (MAXI), a meme-driven ecosystem offering traders up to 1000% in leverage.

The Maxi Doge presale has raised over $2.7 million of its $3 million target, underscoring strong retail demand ahead of its official launch. Currently priced at $0.00026, early investors can still secure MAXI tokens via the official presale website before the next price tier activates in 48 hours.

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Market News

A newly released report from blockchain analytics firm Elliptic says that millions worth of Dogecoin DOGE/USD has been used for illicit activities such as terrorism, child sex abuse material, and far-right extremism.

“While the vast majority of this activity consists of fraud, scams and Ponzi schemes, it also includes the most serious types of crime, including terrorism financing and vendors of child sexual abuse material (CSAM),” the Elliptic report reads.

The Elliptic report quoted a July 2021 release suggesting the rising use of Dogecoin in terror financing, including the use of 84 crypto wallet addresses controlled by Hamas. The wallets using Dogecoin received a total of $40,235 in funding.

Also Read: Elon Musk Does It Again! Endorses Dogecoin, Says He’ll Keep Buying The Meme Coin

The report also indicates that Child Sexual Abuse Material (CSAM) was also funded using Dogecoin payments. 

Dogecoin only covers $3,000 out of the total financing received by CSAM, and Bitcoin BTC/USD remains the dominant mode of payment here.

The most prominent illicit use of Dogecoin involved thefts, scams, and Ponzi schemes. The report uncovered more than 50 such events involving millions of dollars worth of Dogecoin. 

One of the cases led to a seizure of over $20 million in Dogecoin by Chinese authorities as part of a rug pull for a fake cryptocurrency called Plus Token.

Photo: Created with an image from Richard Patterson and Orde Saunders on Flickr

• A recent Elliptic report revealed that Dogecoin has been used for illicit activities on several instances.
• The report revealed that several darknet markets and malware campaigns accept Dogecoin.
• Despite the report, analysts believe Dogecoin price could continue its uptrend.

Based on data from a blockchain intelligence firm report, Dogecoin is widely used to finance illegal activities. Analysts predict a continuation of Dogecoin’s uptrend in the current bear market. 

Dogecoin is used to finance activities on the darknet?

Elliptic, a blockchain analytics firm recently published a report tying Dogecoin to several illicit activities such as terrorism financing and ponzi schemes. A vast majority of illicit activity analyzed by Elliptic accepted Dogecoin for financing their activities. 

Israel’s National Bureau for Counter Terror Financing issued a seizure order against 84 cryptocurrency addresses, associated with the Hamas group, and one of the wallet contained nearly $40,000 in Dogecoin. 

The number of vendors on the darnet that accept Dogecoin has increased consistently. There have been at least 50 cases where criminals cashed out millions of dollars in Dogecoin. This raises concerns among regulators, however Dogecoin price resumed its uptrend despite the report. 

Though malware campaigns and extremist groups accept Dogecoin, the meme coin has found utility at firms like Tesla and SpaceX. 

Analysts predict Dogecoin price rally

Analysts believe Dogecoin price could break out of its downtrend. Azeez Mustafa, a leading crypto analyst argues that if Dogecoin sustains its bullish movement, it could continue its uptrend. If Dogecoin price crosses resistance at 0.00000370 BTC, the asset could affirm its uptrend. 

DOGE-BTC price chart

FXStreet analysts believe self-proclaimed Dogefather Elon Musk’s speech was key to the meme coin’s price trend. Dogecoin price broke into an uptrend, in response to Musk’s comments in a recent Bloomberg Interview at the Qatar Economic Forum. Analysts have predicted where Dogecoin is headed next. For more information, watch this video:

 

Dogecoin is increasingly connected to illicit activity including Ponzi schemes, the financing of terrorism and child sex abuse material (CSAM), according to a new report by blockchain analytics firm Elliptic.

Per the report, the meme coin has enjoyed growing popularity as a method of payment; however, aside from legitimate causes, it has also caught the attention of bad actors, with “millions of dollars worth of Dogecoin transactions connected to illicit activity,” identified.

“While the vast majority of this activity consists of fraud, scams and ponzi schemes, it also includes the most serious types of crime, including terrorism financing and vendors of child sexual abuse material (CSAM),” said Elliptic.

Pointing to the “increasing adoption” of Dogecoin for terrorism financing, the report cited a July 2021 seizure order conducted by Israel’s National Bureau for Counter Terror Financing against 84 crypto addresses believed to be linked to militant group Hamas or otherwise used in terror-related activity; among the crypto addresses were wallets containing $40,235 in DOGE.

The report also flagged up a “small and growing number” of CSAM vendors operating both on the darknet and clearnet that have received payment in Dogecoin. Although the actual amount of Dogecoin identified by Elliptic in this case is low—less than $3,000—analysts warned that it points to an “appetite for criminal actors to adopt a wide range of cryptoassets in a bid to avoid notice.”

Scams and Ponzi Schemes

The “most notable” crime relating to Dogecoin, according to Elliptic, is thefts, scams and Ponzi schemes.

According to the firm, to date it has identified more than 50 instances of thefts, frauds and Ponzi schemes which helped criminals to make “hundreds of millions of dollars worth of Dogecoin.”

These include the $6 billion PlusToken Ponzi scheme, which resulted in the seizure of more than $20 million worth of DOGE by Chinese authorities in 2020, and an alleged theft of $119 million worth of Dogecoin linked to a Turkish Ponzi scheme in 2021.

Far-right extremists embrace crypto

Far-right extremist groups—when excluded from traditional methods of raising funds—have also turned to cryptocurrencies including Dogecoin, Elliptic noted.

According to the firm, these include numerous far-right news sites, blogs and video sharing platforms.

One such news website, Infowars, which claims it is “battling globalism and promoting a pro-human future worldwide,” has so far raised more than $1,700 (£1,383) in Dogecoin.

Elliptic’s findings mirror those of the Financial Action Task Force, which last year reported that far-right groups are increasingly turning to cryptocurrencies including Bitcoin and privacy coins.

Dogecoin, which in recent months has been heavily promoted by Tesla CEO Elon Musk, is currently the world’s 10th largest cryptocurrency with a market capitalization above $8 billion.

Tuesday 21 June 2022 6:06 pm

Cryptocurrency Dogecoin is increasingly being connected to illicit activity like terrorism financing and child sex abuse, according to a new study. 

Blockchain analytics firm Elliptic, who authored the report, claimed it had found evidence to suggest that the popular meme token was being used by illicit actors as payment for illegal activity. 

Dogecoin was accepted as payment by a number of child sex abuse material vendors online, the report alleged. 

While the amount of identified Dogecoin payments used by child sex abuse material vendors is relatively low at $3,000 (£2,443) globally, “the fact that the Dogecoin adoption trend has reached this community further demonstrates the appetite for criminal actors to adopt a wide range of cryptoassets in a bid to avoid notice,” Elliptic’s report said.

Last year, Israel’s National Bureau for Counter Terror Financing issued a seizure order against numerous cryptoasset addresses which were believed to be controlled by militant group Hamas, or otherwise used in terror-related activity. Dogecoin addresses were included in this and had received $40,235 (£32,765.37), according to the report.

Elliptic also identified multiple markets on the darknet markets that accept Dogecoin as payment, such as those selling drugs and stolen data. 

Far-right extremist groups have also utilized Dogecoin, turning to cryptocurrencies when excluded from traditional methods of finance, Elliptic noted. It found that numerous far-right entities have used Dogecoin to raise funds, including far-right website Infowars, which has so far raised more than $1700 (£1383) in Dogecoin. 

Dogecoin has notably been promoted by Elon Musk, the world’s richest man, who said on Sunday he still supports and buys the token.

Dogecoin founders, Billy Markus and Jackson Palmer, have become quite critical of the crypto space since they launched the coin in 2013. In an interview with Australian TV show The Project on Monday, Palmer compared cryptocurrencies to a “house of cards” and said some cards at the bottom have “started to crumble.”

Markus and Palmer did not immediately respond to requests for comment on the report.

Chainalysis, the crypto data analytic firm released a preview of its 2021 Geography of Cryptocurrency report which is scheduled to release later this year. The preview blog focused on the use of cryptocurrencies for illicit activities and which countries and regions see the most of it. Africa topped the list of regions that see the highest exposure to illicit addresses followed by Eastern Europe.

Eastern Europe has a much larger crypto-economy when compared to Latin America and Africa. The report highlighted that Eastern Europe is the only region where for $400 million in crypto transactions 0.5% of the total transactions were believed to be towards illicit addresses.

Western Europe tops the list in terms of crypto-assets sent to illicit addresses followed by Eastern Europe and North America. The following graph also highlights that the Western European regions fall most prey to scams as the highest percentage of funds sent out to illicit addresses comprises of scams followed by darknet addresses.

The graph also highlighted that Eastern Europe saw the highest share of funds sent to darknet addresses which could be because of the popularity of Hydra, the biggest darknet marketplace active in Eastern Europe and Russia.

Ukraine Tops the Country List With Highest Traffic on Scam Addresses

Ukraine topped the list of countries in terms of web traffic share on cryptocurrency scam web addresses, indicating more people from the country visited scam websites than anyone else.

Chainalysis has proven to be one of the top cryptocurrency analytic firms over the years as demand for blockchain analytics has skyrocketed over the past few years. The crypto analytic firm has seen huge demand from enterprises and law enforcing agencies alike and has raised two multi-million rounds to see its valuation grown into billions, making it a member of the fastly growing crypto unicorn club.

Although the analysis indicates the growth in illicit activities around the globe, it is also important to note that the biggest percentage share of illicit activity is 0.5% of the total value. This suggests like any other sector crypto ecosystem is prone to illicit activities, but it is very low.