As the United States and other countries consider the prospect of building national cryptocurrency reserves, up-to-date research from Chainalytic suggests that governments may already be within reach of tens of billions of dollars in potentially recoverable onchain assets – a development that could coincide with discussions about reserves.
In report published on Thursday, Chainalytic estimated that cryptocurrency balances linked to illicit activity exceed $75 billion. This total includes approximately $15 billion held directly by illicit entities and more than $60 billion in portfolios with downstream exposure to these entities.
A blockchain analytics firm has found that darknet market operators and providers control over $40 billion in crypto assets on the blockchain.
About 75% of the total illicit value is held in Bitcoin (BTC), although stablecoins are taking an increasing share of this activity.
Chainalytic linked its findings to the US Trump administration’s creation of a strategic reserve of bitcoin and digital asset stocks. These initiatives aim to expand federal cryptocurrency holdings through budget-neutral measures that may include asset forfeiture.
“[T]The cryptocurrency ecosystem presents law enforcement with an unprecedented opportunity: billions of dollars in illicit proceeds are sitting on public blockchains and could theoretically be seized if authorities are able to coordinate their actions,” the report says.
Chainalytic co-founder and CEO Jonathan Levin said Bloomberg that these numbers take “the potential for asset forfeiture to a whole new level,” adding: “It actually changes the way countries think about it.”
Elsewhere, Canadian authorities recently seized approximately $40 million worth of digital assets from TradeOgre, a cryptocurrency exchange accused of operating without registration and facilitating money laundering. The move sparked ponderous criticism from members of the crypto community who argued that the move overstepped regulatory boundaries.
Related: Bybit hacker launders 100% of stolen cryptocurrencies worth $1.4 billion in 10 days
Blockchain transparency distorts perceptions of crypto crime
While cryptocurrency-related crimes have increased in recent years, including several high-profile hacks targeting major exchanges and service providers, their overall scale remains compact.
According to Chainalytica Crypto Crime Report 2025illicit transactions accounted for just 0.14% of all blockchain activity in 2024, a figure that continues the downward trend from previous years.
In turn, the United Nations Office on Drugs and Crime (UNODC) estimates that 2-5% of global GDP is laundered through time-honored financial systems.
Analysts say one reason crypto crimes attract disproportionate attention is the transparency of blockchain networks, where every transaction is publicly traceable. This visibility makes illegal activity easier to detect and therefore more likely to be reported than crimes involving cash or conventional banking systems.
As a relatively up-to-date technology, the cryptocurrency ecosystem has also come under intense regulatory and enforcement scrutiny, reinforcing perceptions of widespread abuse.
Related: Blockchain security must be localized to stem the wave of crypto crime in Asia
