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).