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A Binance report found that the use of crypto for illegal transactions is reducing rapidly.
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Binance noted that this is due to the exchange’s efforts and partnership with law enforcement authorities to tackle criminal activities.
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Chainalysis 2025 report discovered that less than 0.007% of Binance’s transaction volume was connected directly to digital wallets linked with illegal actions.
A recent report from crypto exchange giant Binance found that the use of crypto assets for illegal transactions is quickly reducing. According to a recent report, digital assets have been used by threat actors for transacting in CSAM, exfiltrated data, malware and many others.
Binance noted that the use of digital assets for nefarious and illegal means is steadily declining globally. Therefore, this implies a positive step for the crypto sector and investors.
Binance Report Shows Steady Decline in Dark Web Crypto Transactions
Binance said in a comment that illegal transaction volumes were once a key concern for both users and federal regulators. However, Binance noted that trading volume is currently representing a tiny fraction of worldwide crypto activity. The exchange added that this is because of efforts from analytics providers, crypto exchanges, and law enforcement bodies to bolster crypto industry protection. A key factor in this success is the forensic power of blockchain analysis, a technique we explored in depth regarding how Bitcoin’s public ledger became a law enforcement goldmine. We’re seeing blockchain analysis’s forensic power play out in major cases. For example, the recent takedowns of Russian dark web markets that were found to have laundered a staggering $2 billion through crypto exchanges. That’s a clear sign that the walls are closing in on this once-unchecked ecosystem.
The firm behind this current report highlighted that the analysis from TRM Labs and Chainalysis revealed a “significant decline” in illegal activity on centralized crypto positions. Digital assets, most particularly Bitcoin, are most times used on the darknet to conduct untraceable transactions, typically for illegal services or illicit material.
Some examples include criminals purchasing exfiltrated sensitive customer details, buying CSAM, hiring contract killers, or acquiring drugs, all using digital assets on dark web websites.
Further Reports
Binance, which has the highest trading volume of any centralized crypto exchange (CEX) according to CoinMarketCap data, noted that the seven biggest CEXes by trading volume recorded only 0.18—0.023% of the overall transaction activity. This is a significant improvement in contrast to the reports of the previous years.
Binance said that it has made notable efforts in making this possible, recording the most significant reduction in illegal transaction share despite holding the largest liquidity pool globally.
A recent report from Chainalysis revealed that in June 2025, just 0.007% of Binance’s trading volume came directly from wallets connected to illegal activity.
This implies that only a little more than $1.3 million of the CEX’s trading volume emerged from criminals. This amount, compared to the $20 billion of its overall trading volume, seems insignificant, but is well sufficient to continue sustaining the black market.
While the criminal market is still there, it is consistently declining as cryptocurrency exchanges globally continue to align with authorities.
Binance states that between January 2023 and this June, it was able to minimize transactions on its platform directly connected to illegal actions by 96%.
The global crypto exchange said that it has complied with more than 240,000 requests from law enforcement agencies worldwide and conducted more than 400 training sessions for securities investigators globally. During these sessions, the exchange noted that it has shared insights on crypto and blockchain tracking and scam prevention.
Furthermore, Binance boasts that it has implemented techniques to quickly locate and freeze illegal funds before further distribution.
The takeaway? The ‘anonymity’ of crypto was always a myth for all but the most sophisticated actors. What we’re seeing now is the inevitable result of treating the blockchain as a permanent, public ledger for forensic investigation.
