For years, the public narrative was simple: if someone mentioned crypto crime, most people immediately pictured Bitcoin. From early darknet marketplaces to headlines about ransomware payments, Bitcoin became the symbolic “currency of criminals.” But today, the story has changed in a major way. Stablecoins now power most crypto crime, not Bitcoin, and this shift is reshaping how regulators, exchanges, and everyday users think about crypto risks.
This isn’t because Bitcoin became “safe” or crime disappeared. Instead, criminal activity has evolved with the market. Crypto crime is increasingly about speed, convenience, liquidity, and anonymity—plus the ability to move large sums without the extreme volatility of Bitcoin. In that environment, stablecoins are naturally attractive. Unlike Bitcoin, stablecoins aim to hold a steady value, usually pegged to the U.S. dollar. That makes them far more useful for laundering money, settling payments, and moving funds internationally without price fluctuations.
As crypto adoption grows, stablecoins have become the backbone of trading, DeFi activity, and cross-border transfers. And wherever money flows at scale, criminals follow. So when people say, stablecoins now power most crypto crime, not Bitcoin, they’re describing a new reality: illegal finance is following the tools that are easiest to use and hardest to trace quickly.
In this article, we’ll explore why stablecoins have become the preferred instrument for illicit activity, what kinds of crimes they’re used for, and what this means for the future of regulation and crypto safety. We’ll also break down how investigators track stablecoin crime, why it’s often more traceable than people assume, and what businesses and users can do to protect themselves.
The Role of Stablecoins in Modern Crypto Crime Ecosystems
Stablecoins as the “Settlement Layer” of Illicit Finance
In the early days, Bitcoin was often used as both the payment rail and the store of value. Today, many criminals treat stablecoins the same way traditional criminals treat cash—something that is easy to move, widely accepted, and stable in value.
Stablecoins have become a universal settlement layer. Whether the crime involves fraud, hacking, ransomware, or sanctions evasion, criminals increasingly want their final proceeds parked in a stable asset before taking the next step.
This is why stablecoins now power most crypto crime, not Bitcoin is more than just a headline—it reflects a structural shift. Bitcoin still appears in crime cases, but stablecoins are often used for the final consolidation, laundering stages, or payouts.
Cross-Chain Flexibility Makes Tracking Harder
A key reason stablecoins now power most crypto crime, not Bitcoin is that stablecoins exist across multiple blockchains. Criminals exploit this. They may move stablecoins from Ethereum to Tron, then to BNB Chain, then into a privacy-focused ecosystem, and eventually onto an exchange in another jurisdiction.
Each hop adds complexity for investigators. Even when transactions are visible on-chain, the sheer number of chains, bridges, and mixers increases the “friction” of tracing.
That said, stablecoins also have a weakness criminals can’t ignore: many stablecoin issuers have centralized control and can freeze addresses. This creates an interesting dynamic where stablecoins are highly useful for crime, yet sometimes easier to disrupt than Bitcoin.
Why Bitcoin Lost Its Dominance in Crypto Crime
Bitcoin Is Transparent, Traceable, and High-Profile
Bitcoin was once considered anonymous, but that myth has been shattered. Bitcoin is a public ledger. While identities aren’t directly visible, transactions are permanently recorded. Investigators can link wallets to exchange accounts, KYC records, IP logs, and payment patterns.
This transparency means Bitcoin is increasingly risky for criminals. They can still use it, but it’s often easier for law enforcement to follow Bitcoin trails than people think.
That’s why stablecoins now power most crypto crime, not Bitcoin isn’t necessarily because Bitcoin is “clean,” but because Bitcoin is more visible and has been heavily studied by blockchain analytics firms and law enforcement agencies for years.
Stablecoins Are More Practical Than Bitcoin for Illicit Payments
Bitcoin transactions can also be slower and more expensive during network congestion. Stablecoins on faster networks offer near-instant settlement. For crime operations, efficiency matters.
If you’re running a scam, paying affiliates, laundering proceeds, or cashing out stolen funds, stablecoins are simply more practical. And practicality is exactly why stablecoins now power most crypto crime, not Bitcoin in the current era.
Types of Crypto Crime Where Stablecoins Dominate
Ransomware and Extortion Payments
Ransomware operators historically demanded Bitcoin because it was the most liquid crypto asset. But now, many ransomware gangs accept stablecoins—or even prefer them—because stablecoins preserve value. In a ransomware operation, criminals may receive funds and quickly convert them into stablecoins to protect profits from volatility.
This is another reason stablecoins now power most crypto crime, not Bitcoin. Stablecoins function as a “safe harbor” asset during laundering and cash-out stages.
Pig Butchering Scams and Crypto Investment Fraud
One of the fastest-growing categories in crypto crime involves long-term fraud schemes, often called pig butchering scams. In these cases, scammers slowly build trust with victims, then convince them to invest in fake platforms.
Victims are often instructed to deposit stablecoins because they’re easy to send, hard to reverse, and maintain value. Stablecoins also feel “less risky” to victims than volatile assets like Bitcoin, which can make the scam more believable.
As these scams grow, so does the reality that stablecoins now power most crypto crime, not Bitcoin—because stablecoins are often the payment method scammers request.
Exchange Hacks, DeFi Exploits, and Stolen Fund Laundering
When hackers steal funds from DeFi protocols, they often receive volatile tokens. The next step is usually to convert those tokens into stablecoins, because stablecoins are easier to move and harder to lose value on.
Hackers then layer transactions across DEX swaps, bridges, and different chains. Stablecoins act as the “core currency” throughout the laundering process. This makes it clear why stablecoins now power most crypto crime, not Bitcoin in the world of modern crypto exploits.
Stablecoin Paradox: More Crime, Yet More Control
Stablecoin Issuers Can Freeze Funds
Unlike Bitcoin, many stablecoins are issued by centralized entities. This introduces a unique capability: issuers can freeze tokens at specific addresses if required by law enforcement or internal compliance policies.
This is a major reason stablecoins are both attractive and dangerous for criminals. Stablecoins make crime easier, but they also create enforcement leverage. Investigators can track funds and request freezes in a way that’s not possible with Bitcoin.
So even though stablecoins now power most crypto crime, not Bitcoin, stablecoins may also become the most enforceable part of crypto crime ecosystems over time.
Compliance Pressure Is Stronger on Stablecoins
Stablecoin companies face growing scrutiny. Governments view stablecoins as closer to digital dollars than speculative assets. That means stablecoins are increasingly treated like financial infrastructure, not just crypto products.
As regulation increases, stablecoins may become less useful for criminals—unless criminals migrate to unregulated stablecoin variants or alternative forms of synthetic dollars.
Still, for now, stablecoins now power most crypto crime, not Bitcoin, largely because stablecoins sit at the intersection of liquidity, stability, and global transferability.
How Investigators Track Stablecoin Crime
Blockchain Analytics Has Improved Dramatically
The idea that stablecoins are untraceable is outdated. Modern blockchain analytics tools can identify patterns across wallets, tag exchange clusters, and track flows across chains. Stablecoins are not immune to tracing. In many cases, they are easier to trace than cash.
Stablecoins are often used repeatedly, moved in predictable amounts, and routed through known exchanges. That makes detection possible.
This is important because when we say stablecoins now power most crypto crime, not Bitcoin, we are not saying stablecoins are invisible. We are saying stablecoins are widely used—and therefore heavily monitored.
Exchanges and On-Ramps Are Key Chokepoints
Most criminals eventually need to cash out. That requires interacting with exchanges, OTC brokers, or fiat on-ramps. This is where KYC and AML controls matter.
If authorities can identify the final cash-out path, stablecoin crime becomes easier to prosecute. Stablecoin issuers also cooperate with law enforcement more frequently than decentralized protocols do.
That means stablecoins are increasingly a high-risk tool for criminals, even as stablecoins now power most crypto crime, not Bitcoin remains true statistically.
Why Tron and Low-Fee Networks Are Often Involved
A major trend in stablecoin crime is the use of low-fee, high-speed networks. Stablecoins on Tron, for example, are popular for cross-border transfers because they are fast and inexpensive.
Criminals also prefer environments where they can move funds in smaller increments repeatedly without paying large fees. Many stablecoin transactions happen on networks that are optimized for speed and cost, which increases volume and makes illicit transfers easier to hide among legitimate ones.
This infrastructure advantage strengthens the argument that stablecoins now power most crypto crime, not Bitcoin because stablecoins are portable across networks designed for rapid value movement.
What This Means for Regulation and the Future of Crypto
Stablecoins Will Be Regulated Like Financial Infrastructure
As stablecoins become embedded in payments, trading, and remittances, regulators will treat them like core financial infrastructure. Expect stronger requirements around reserves, auditing, licensing, and transaction monitoring.
This may reduce certain types of stablecoin misuse, but it could also push criminals toward less regulated stablecoin-like assets. Still, regulators will focus on stablecoins because stablecoins now power most crypto crime, not Bitcoin, and policymakers tend to target the biggest source of risk.
Bitcoin’s Reputation May Quietly Improve
It’s possible Bitcoin’s reputation improves over time—not because Bitcoin is crime-free, but because crime narratives evolve with evidence. Bitcoin’s transparency and mainstream adoption may position it more as a regulated commodity-like asset, while stablecoins become the focus of enforcement.
This doesn’t mean stablecoins are “bad.” In fact, stablecoins are extremely useful for legitimate global commerce. The issue is that criminals exploit whatever works best. That’s why stablecoins now power most crypto crime, not Bitcoin is a reality driven by utility, not ideology.
How Users and Businesses Can Protect Themselves
Stablecoins are not inherently criminal tools. But because stablecoins now power most crypto crime, not Bitcoin, users and businesses need better safeguards.
If you’re a business accepting stablecoin payments, you should treat stablecoin transactions with the same seriousness as wire transfers. Wallet screening, transaction monitoring, and strong partner selection matter. In compliance terms, stablecoins are part of a broader anti-money laundering (AML) reality.
For individuals, the biggest risk is not accidentally committing a crime—it’s becoming a victim of one. Scammers increasingly ask for stablecoin deposits because stablecoins are fast and irreversible. If someone is pressuring you to send stablecoins urgently, that’s a major red flag.
As stablecoin adoption grows, security education becomes critical, because stablecoins sit at the center of both legitimate and illicit crypto finance.
Conclusion
The crypto crime landscape has changed dramatically. Bitcoin is no longer the primary currency associated with illicit crypto activity. Instead, stablecoins now power most crypto crime, not Bitcoin, because stablecoins provide what criminals value most: price stability, high liquidity, fast settlement, and easy cross-border movement.
At the same time, stablecoins introduce enforcement opportunities. Issuers can freeze funds, and many stablecoin transactions are highly traceable. As regulation tightens and compliance improves, stablecoin crime may become easier to disrupt than Bitcoin-based crime ever was.
Still, the shift is real and meaningful. Understanding why stablecoins now power most crypto crime, not Bitcoin helps everyone—from policymakers and exchanges to everyday users—make smarter decisions about risk, regulation, and security in the modern crypto economy.
FAQs
Q: Why do stablecoins attract more criminal activity than Bitcoin today?
Stablecoins attract more criminal activity because they maintain a stable value, making them ideal for storing profits, paying participants, and laundering funds. This is a key reason stablecoins now power most crypto crime, not Bitcoin.
Q: Are stablecoins harder to trace than Bitcoin?
Not necessarily. Stablecoins often operate on public blockchains, and analytics tools can track them effectively. However, criminals use cross-chain transfers and high-volume movement to complicate tracing, supporting the trend that stablecoins now power most crypto crime, not Bitcoin.
Q: Can stablecoin issuers freeze stolen funds?
Yes. Many major stablecoins have centralized controls that allow issuers to freeze tokens linked to hacks or sanctioned activity. This creates a unique enforcement advantage, even as stablecoins now power most crypto crime, not Bitcoin.
Q: Does this mean Bitcoin is no longer used in crypto crime?
Bitcoin is still used in certain crimes, especially where liquidity or legacy systems matter. But the broader trend is that stablecoins now power most crypto crime, not Bitcoin, because stablecoins are more practical for modern illicit finance.
Q: How can I avoid becoming a victim of stablecoin-related scams?
Avoid sending stablecoins to strangers, verify platforms independently, and be cautious of urgent payment demands. Scammers prefer stablecoins because transfers are fast and irreversible, which is why stablecoins now power most crypto crime, not Bitcoin in many fraud cases.
