As the United States and other countries weigh the possibility of creating national cryptocurrency reserves, new research from Chainalysis suggests that governments may already be within reach of tens of billions of dollars in potentially recoverable on-chain assets, a development that could intersect with those discussions about reserves.
In a report released Thursday, Chainalysis estimated that cryptocurrency balances linked to illicit activities exceed $75 billion. That total includes approximately $15 billion held directly by illicit entities and more than $60 billion in wallets with subsequent exposure to those entities.
The blockchain analytics company said darknet market operators and providers control more than $40 billion in crypto assets on the blockchain.
Around 75% of total illicit value is held in Bitcoin (BTC), although stablecoins account for an increasing proportion of such activity.
Chainalysis linked its findings to the Trump administration’s creation of a strategic Bitcoin reserve and digital asset reserve. These initiatives aim to expand federal cryptocurrency holdings through budget-neutral means, which may include asset forfeiture.
“[T]“The cryptocurrency ecosystem presents law enforcement with an unprecedented opportunity: Billions of dollars in illicit profits sit on public blockchains and are theoretically seizable if authorities can coordinate action,” the report says.
Chainalysis co-founder and CEO Jonathan Levin told Bloomberg that the figures raise “the potential for asset confiscation to a completely different level,” adding: “It changes the way countries think about it.”
Elsewhere, Canadian authorities recently seized around $40 million in digital assets from TradeOgre, a cryptocurrency exchange accused of operating without registration and facilitating money laundering. The action sparked strong criticism from members of the crypto community, who argued that the move exceeded regulatory limits.
Related: Bybit hacker launders 100% of stolen cryptocurrencies worth $1.4 billion in 10 days
Blockchain Transparency Distorts Perception of Crypto Crime
While cryptocrimes have increased in recent years, including several high-profile attacks targeting major exchanges and service providers, their overall scale remains small.
According to Chainalysis’ 2025 Crypto Crime Report, illicit transactions accounted for just 0.14% of all blockchain activity in 2024, a figure that continues a downward trend from previous years.
In contrast, the United Nations Office on Drugs and Crime (UNODC) estimates that between 2% and 5% of global GDP is laundered through traditional financial systems.
Analysts say one reason cryptocrimes attract disproportionate attention is the transparency of blockchain networks, where every transaction is publicly traceable. That visibility makes illicit activities easier to detect and therefore more reported than crimes involving cash or conventional banking systems.
As a relatively new technology, the crypto ecosystem has also faced intense regulatory and enforcement scrutiny, amplifying perceptions of widespread irregularities.
Related: Blockchain security must be localized to stem the wave of cryptocrime in Asia
