In a report posted on the social media platform X on May 16, Binance Research analyzed the recovery of illegal funds related to cryptocurrencies. The report said that in 2025, the recovery and seizure rate of illegal cryptocurrencies reached about 11%, which was equivalent to 55 times the recovery rate of illegal funds in fiat currencies (less than 1% per year).
Figure a Compilation of Seizure Information
This figure is not an estimate of a single organization, but a compilation of seizure information published by Tether, Interpol, T3 Financial Crime Unit, etc. The United Nations Office on Drugs and Crime has estimated that the recovery rate of illegal funds in fiat currencies has stayed at less than 1% per year globally. This marks a striking difference with cryptocurrencies.
To add detail, the 2025 summary includes the seizure of Bitcoin worth about $15 billion (about 2.382 trillion yen) by the Prince Group project. Even after the exclusion of this large project, the recovery rate will still remain at about 10 times the fiat currency ratio. This definitely shows that the figure did not depend on a specific case.
According to SlowMist and PeckShield, blockchain security firms, 8.3 – 13.2% of cryptocurrencies stolen in 2025 will be recovered or frozen. This has been a result of increased collaboration between exchanges, stablecoin issuers, and law enforcement agencies, as well as rapid incident response.
Is Crypto Still Being Seen as a Hotbed of Illegal Funds?
Cryptocurrencies have long been criticized for their being prone to money laundering and fraudulent transfers. However, Binance points out that blockchain is transparent by design, and regulators and law enforcement agencies have begun to take advantage of this, which reveals a reality that deviates from the usual image.
Although blockchain design has not eradicated cryptocurrency crimes, the sentiment that it attracts illegal funds has diminished.
