CASE STUDY | This Latest Sting Reveals the Extent of Crypto Use to Facilitate Crimes

Crypto is increasingly becoming part of the financial infrastructure used by criminals to facilitate serious crimes but its transparency is also making those networks easier to trace.

A Chainalysis-led investigation, dubbed Operation Lighthouse, examined 29,120 cryptocurrency addresses and digital identifiers linked to more than 100 child sexual abuse material networks.

Working with Binance, Coinbase, law enforcement agencies, and other partners, the operation

• generated 14,300 investigative leads
• across 11 crypto exchanges and payment services,
• identified more than 7,700 suspect accounts, and
• linked suspects to 125 countries.

REGULATION | Binance to Block Transactions With 14 Crypto Platforms Following Regulatory Review

The development highlights a broader trend in crypto crime.

Chainalysis says cryptocurrency-related flows to suspected human-trafficking services rose 85% in 2025, reaching hundreds of millions of dollars. Stablecoins have become particularly important in some trafficking and illicit-service networks because of their price stability and ease of conversion.

2025 RECAP | Illicit Stablecoin Activity Surged to 5-Year High in 2025 with Over 80% Used for Sanctions Evasion

Crypto is therefore playing an increasingly visible role in the financing of criminal activity – from exploitation and trafficking to fraud and ransomware.