According to Kashif Raza, illicit transactions represent less than 1% of global crypto activity (source: @simplykashif, Jan 12, 2026). This aligns with Chainalysis, which estimated illicit activity at roughly 0.34% of on-chain volume in 2023, well below 1% (source: Chainalysis 2024 Crypto Crime Report). TRM Labs likewise reported that illicit volume remained under 1% of total transactions, despite fluctuations in absolute illicit value from scams and sanctions evasion (source: TRM Labs 2024 Illicit Crypto Report). For traders, a sub-1% share supports an institutional adoption narrative for BTC and ETH while concentrating regulatory risk on specific vectors such as mixers and sanctioned services like Tornado Cash and Sinbad rather than the broader market (sources: U.S. Treasury OFAC, Aug 2022 Tornado Cash designation; U.S. Treasury OFAC, Nov 2023 Sinbad designation).

According to Lex Sokolin, he shared a link titled How to stop scams in crypto 101 focused on reducing fraud in digital assets. source: Lex Sokolin on X, Aug 22, 2025 Crypto investment scam losses totaled $3.94 billion in 2023, underscoring material capital-at-risk for market participants. source: FBI Internet Crime Complaint Center (IC3) 2023 Annual Report On-chain illicit transaction volume reached $24.2 billion in 2023, with scams tracked as a key category by blockchain analytics. source: Chainalysis 2024 Crypto Crime Report Traders can lower exposure by verifying platforms and registrations, rejecting guaranteed-return pitches, and independently confirming wallet addresses and token contract details before transacting. source: U.S. CFTC Customer Advisories on digital assets Implementing strong authentication and anti-phishing practices reduces account-takeover risk during trading workflows. source: FBI public guidance on cryptocurrency investment scams; CISA phishing security guidance