Bitrace's 2024 Crypto Crime Report revealed that criminals transferred $649 billion in stablecoins to high-risk addresses, indicating a rise in fraud and money laundering activities. Tether and Circle froze over $1 billion in assets as part of increased enforcement actions against stablecoin money laundering.

The report focused on various aspects like gambling and darknet markets, emphasizing the escalating law enforcement measures against stablecoin-related crimes. While stablecoins are an essential element of the crypto industry, they are also exploited for illicit activities, as highlighted by allegations of North Korean hackers' significant involvement.

The data showed that transactions involving stablecoins to high-risk addresses increased in 2024 compared to the previous year. However, these transactions represented only a small portion of global stablecoin volume. Tether accounted for the majority of these transactions, with Tron and Ethereum being the preferred blockchains for USDT stablecoins in crime-related activities.

Despite the growth in illicit trades on the darknet and crypto gambling, efforts are being made within the industry to combat scams and fraud. Huione provides escrow services, and Tether has been freezing wallets linked to criminal activities. The total frozen assets increased significantly in 2024, indicating progress in tackling criminal exploitation of stablecoins.

In conclusion, while stablecoins play a crucial role in the legitimate crypto economy, they are also increasingly used in criminal activities. However, with enhanced enforcement efforts and industry initiatives, the prevalence of fraudulent activities may be reduced as legitimate uses of stablecoins continue to grow.