A report by Chainalysis shows illicit cryptocurrency transactions decreased in 2023.

Stablecoins like Tether and USD Coin have become the preferred choice for cybercriminals.

Stablecoins were involved in most crypto scams and payments to sanctioned countries and individuals.

They accounted for a significant portion of cryptocurrency transaction volume and $40 billion worth of illicit transactions in 2022 and 2023.

Stablecoins are preferred for their stability and usage in countries with limited access to the US dollar.

Regulators are considering new frameworks for stablecoins due to difficulty maintaining their pegs.

The rise of central bank digital currencies and tokenized deposits may shift the focus away from stablecoins.

The report warns about the limited effectiveness of sanctions in preventing illicit transactions and the rise of ransomware attacks.