Crypto Crime Myths Dispelled: Only 1% of Blockchain Activity Illicit

- Only 1% of blockchain activity involves crime, per TRM Labs' Ari Redbord. - Innovations like zk-proofs are bridging privacy and security in crypto. On September 11, 2025, Cointelegraph reported that only 1% of blockchain activity involves crime, according to Ari Redbord, global head of policy at TRM Labs and a former U.S. federal prosecutor. Redbord explained that while scams and fraud have led to an estimated $50 billion lost over the past two years, lawful activity dominates the space, representing the remaining 99%. Redbord emphasized that bad actors often exploit emerging technologies early. However, blockchain’s inherent transparency offers a significant advantage in combating illicit activity. The technology records every transaction on a public, immutable ledger, making transactions traceable, trackable, and immutable. As a result, this level of visibility equips law enforcement and compliance teams with effective tools to identify and address wrongdoing. Emerging innovations are also helping to strengthen privacy without compromising security. Redbord highlighted zero-knowledge proofs (zk-proofs) as a groundbreaking cryptographic method. With zk-proofs, users can verify the accuracy of data without disclosing the data itself. This capability protects privacy while enabling compliance with anti-fraud and anti-crime measures. Blockchain’s transparent architecture and advancements like zk-proofs underscore its potential to balance innovation with security. These features help dispel misconceptions about its role in criminal activity.