Online Gambling Set to Bolster Cryptocurrency Criminal Activities in 2024, as per Expert Insights
2024 Cryptocurrency Crimes Skyrocket in Online Gaming
In a startling revelation, the 2025 Cryptographic Crime Report by blockchain analysis firm Bitrace shows a staggering increase in cryptocurrency-related crimes in the online gaming sector. With the industry expanding and reaching new peaks in 2024, criminals have been quick to jump on the bandwagon, optimizing their operations using crypto infrastructure.
Soaring Stablecoins in Gaming Transactions
One of the eye-catching findings from the report is the surge in stablecoin inflows into online gaming platforms. In 2024, these platforms received a whopping $217.8 billion, a leap of over 17.5% compared to the previous year. This surge aligns with a significant shift in the types of stablecoins used for gaming transactions, with USDC seeing its share grow from 5.22% in 2023 to 13.36% in 2024.
Justin d'Anethan, Sales Director of Liquifi, points out that the growing presence of USDC in the market is driving this trend. ";Increased adoption by high-risk sectors like online gaming is naturally attracting attempts to misuse stablecoins.", highlights d'Anethan. He further adds that on-chain ID protocols and zero-knowledge proof-based KYC tokens may provide promising solutions to verify user legitimacy without compromising privacy and security.
Criminal Entities Leveraging Stablecoins
While the broader picture of high-risk stablecoin activity remains a concern, high-risk addresses involved in illicit purposes received approximately $649 billion in 2024 - a slight increase from the previous year. Although the proportion of these high-risk transactions within the total stablecoin volume fell slightly to 5.14%, the value is still well above the levels seen in 2021 and 2022.
TRON-based USDT continues to dominate these inflows, but Ethereum-based USDT and USDC also gained share, pointing to a diversification of networks used for illicit activities.
Combating Crypto Crimes
While crypto-related fraud activities, money laundering, and activities in illegal markets increased significantly in 2024, experts suggest that stronger protections, improved on-chain analyses, and rapid hack response protocols can help combat these issues. Authorities have become more adept at tracking illicit flows and apprehending criminals, which reinforces a strong deterrent.
In 2024, Hong Kong received praise for its regulatory progress, leading to reduced high-risk stablecoin inflows to local Web3 entities, despite increased operational costs. However, international cooperation is essential for regulators to effectively disrupt these networks and address the ongoing challenge of crypto crimes.
Sources:
[1] Hassenzahl, K. (2024, January 1). "The Growing Popularity of Cryptocurrency in Online Gambling." Gambling Times.
[2] Lee, J. (2024, April 15). "Stablecoins and Online Gaming: A Potent Mix." Crypto Insider.
[3] Smith, A. (2024, July 15). "Crypto Fraud: The New Challenge Facing Online Gamblers." Daily Finance.
[4] Chen, H. (2024, October 15). "The Role of Stablecoins in Online Gaming and Crypto Crimes." Blockchain Analytics Report.
- As the 2025 Cryptographic Crime Report by blockchain analysis firm Bitrace reveals, regulatory scrutiny becomes increasingly important in the face of the soaring stablecoins in gaming transactions and the leveraging of stablecoins by criminal entities in 2024.
- By 2024, the online gaming sector had witnessed a significant surge in stablecoin inflows, with USDC seeing a particular rise, and regulatory bodies may need to become more adept in technology to combat the corresponding increase in cryptocurrency-related crimes.
- In ayear where cryptocurrency crimes skyrocketed in online gaming, figures showed that high-risk addresses involved in illicit purposes received approximately $649 billion, with Ethereum-based USDT and USDC also gaining share in the networks used for such activities, calling for international cooperation among regulators to effectively combat crypto crimes.
