Crypto Recoveries Hit 11% of Illicit Funds in 2025, 55x TradFi Rate

On May 16 Binance Research reported authorities and exchanges recovered or froze 11% of 2025 illicit crypto flows, roughly 55 times the 0.2% rate estimated for traditional finance. The finding follows May 15 disclosures that $75 billion in tainted funds remain on-chain, a 28% year-over-year increase and the highest annual total since 2016. Despite representing only 1% of on-chain volume, larger DeFi exploits such as KelpDAO, Drift and Resolv drove absolute growth while KYT screening, stablecoin freezes and mixer limits of about $10 million per day continue to hinder cash-outs, underscoring blockchain’s superior traceability.