Binance Research said illicit crypto transactions account for less than 1% of total on-chain volume. The report also estimated that more than $75 billion in illicit funds sat trapped on-chain in 2025, up roughly 28% from 2024. The figure is large, but the report’s point is that the money is not moving freely. It is accumulating because cashing out has become harder.
That framing runs against a common claim about crypto. In the report, blockchain visibility is presented as the reason more illicit funds remain stranded. Once funds move on-chain, their path is recorded, wallets can be traced, and transaction history stays available. The report contrasts that with traditional financial crime, where shell companies, correspondent banking layers, and cash-heavy businesses can break the trail quickly.
Mixer capacity remains too small for large laundering operations
On crypto mixers, Binance Research said the biggest active services, Wasabi and CryptoMixer, can handle no more than about $10 million per day combined. At that rate, a criminal trying to process $1 billion in stolen funds would need more than 100 days just to move through the obscuring stage. That is a long window. It also creates time for monitoring and intervention.
The report argues that this makes mixers a weak option for large-scale laundering. The issue is not only limited throughput. Suspicious transfers can be flagged as they move, and the sequence of on-chain transactions leaves a persistent record that investigators can revisit at any point.
Cash-out routes face checks before funds leave the chain
Binance Research said the barriers in 2026 extend beyond mixer limits. KYT screening can identify suspicious wallets before they reach an exchange. KYC rules can block withdrawals at off-ramps. Stablecoin issuers can freeze flagged balances directly. The report also said law enforcement can seize funds without relying on a prolonged fight over bank records.
In practice, that means many exit points are already under watch. Moving value from a blockchain address into the fiat system is harder once a wallet has been identified, and the address history tied to that movement remains available for review.
Report compares crypto with traditional money laundering channels
Citing the United Nations Office on Drugs and Crime, the report said 2% to 5% of global GDP is laundered through traditional financial systems each year. By comparison, illicit crypto activity has stayed below 1% of total transaction volume from 2020 through 2025.
Binance Research also said investigators can continuously trace more than 80% of illicit fund flows, extending beyond the original crime-linked address into downstream wallets one or two hops away. The report’s conclusion is narrow but clear: blockchain transparency has not made large-scale financial crime easier. It has made hiding the money harder, leaving a growing pool of illicit assets stranded on-chain.