Binance Research: Illicit Crypto Activity Stays Below 1% As Blockchain Traceability And Mixer Limits Hinder Laundering Efforts
In Brief
Binance Research says illicit crypto activity remains under 1% of on-chain volume, while stricter compliance controls and blockchain traceability make laundering stolen funds increasingly difficult.
Binance Research, the market analysis and insights division of the Binance cryptocurrency exchange, has published a report indicating that illicit crypto activity represents less than 1% of total on-chain transaction volume.
The report says that, as of 2025, more than $75 billion in illicit funds were still visible on blockchains, marking an increase of roughly 28% from 2024. It also notes that this pool of funds has expanded each year since 2016, suggesting that a growing share of criminal proceeds is remaining within the blockchain environment rather than being fully removed from it.
The report attributes this trend to a structural bottleneck in laundering activity. While illegal funds can move through the system, the process of turning them into spendable cash is increasingly constrained by monitoring tools and compliance controls.
Wallet screening at the point of entry can identify suspicious activity, know-your-customer procedures can block access at exchange withdrawal points, stablecoin issuers can freeze balances, and law enforcement agencies can seize assets directly in some cases. Taken together, these layers make it more difficult for illicit actors to complete a clean exit from the crypto ecosystem.
Crypto Mixers Face Capacity Limits As Blockchain Traceability Strengthens Investigations
A further constraint comes from the limited capacity of major crypto mixers. According to the report, services such as Wasabi and CryptoMixer can handle no more than about $10 million per day.
At that rate, obscuring $1 billion in stolen assets could require more than 100 days, even before accounting for transactions that may be flagged during the process. The report presents this as evidence that mixers do not provide a scalable solution for laundering large sums and instead function as a narrow and imperfect workaround.
The analysis also points to the persistence of blockchain traceability. More than 80% of illicit funds on-chain, it says, do not remain at the original address tied to the crime. Instead, they are moved to downstream wallets one or two steps away. Even so, each transfer remains recorded on the ledger, allowing investigators and analytics firms to follow the movement of funds across successive addresses.
The report concludes that while illicit assets may become less visible at the first point of contact, the transaction trail itself remains permanently preserved and can be traced through later movements.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
More articles
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
