A report by Bitrace revealed that in 2024, approximately $649 billion worth of stablecoin transactions, making up about 5.14% of the total stablecoin transaction volume, were associated with high-risk addresses linked to illicit activities. This figure is a decrease from 5.94% in 2023, but significantly higher than 2.8% in 2022 and 1.63% in 2021. High-risk addresses are those used illegally to receive, transfer, or store assets. Tether (USDT) was the dominant stablecoin in high-risk transactions, accounting for over 70% of the total volume. The rising market capitalization of USDT, valued at around $148 billion, contributes to its prevalence. Moreover, online gambling platforms processed $217.8 billion in stablecoins in 2024, marking a 17.5% increase from the previous year. USDC's market share is also increasing, as it reached 13.36% in gambling transactions. The findings indicate growing concerns regarding the use of stablecoins in illicit activities, highlighting challenges for compliance within the cryptocurrency ecosystem.

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