Report: Stablecoins Use by Criminals Increased in 2022-2023

In mid-2023, the Reserve Bank of India issued a warning, stating that stablecoins pose a potential threat to global financial stability. The widespread adoption of these digital currencies could lead to a worldwide crisis, causing severe repercussions for the economy.

Last week, blockchain analytics firm Chainalysis discussed the rising use of stablecoins in criminal activities.

According to their data, there has been an uptick in cybercriminals utilizing stablecoins with fiat backing between 2022 and 2023.

While Bitcoin was previously the preferred method for illicit transactions between 2018 and 2021, there has been a shift towards stablecoins in recent years. In fact, the majority of illegal transactions now involve stablecoins, as reported by Chainalysis.

Criminals have been using these tokens on the darknet to buy and sell goods, as well as for extortion purposes. However, the researchers also noted that ransomware attacks still demand Bitcoin as ransom from victims.