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Binance Research: The seizure rate of illegal funds in crypto assets is about 11% in 2025, significantly higher than that of the traditional financial system

Binance Research released a report stating that crypto assets are not a "safe haven for illegal funds." In 2025, approximately 11% of illegal fund flows in the global crypto sector have been seized or frozen, which is about 55 times the recovery rate of traditional fiat currency systems.The report pointed out that this data is derived from public law enforcement and freezing actions by institutions such as Tether, Interpol, and T3 Financial Crime Unit, rather than statistics from a single regulatory agency. At the same time, compared to the United Nations Office on Drugs and Crime (UNODC) estimated recovery rate of less than 1% for illegal funds in the traditional financial system, the tracking and recovery efficiency in the crypto sector is significantly higher.The research also mentioned that even after excluding a single large case (involving about $15 billion in Bitcoin related to the Prince Group), the remaining crypto asset recovery rate in 2025 is still about 10 times that of the traditional financial system. Additionally, data from SlowMist and PeckShield shows that in 2025, approximately 8.3% to 13.2% of stolen crypto assets were successfully recovered or frozen, reflecting improved efficiency in security response and collaboration among exchanges, stablecoin issuers, and law enforcement agencies.The report concluded that while the issue of crypto crime still exists, the view that "crypto assets are inherently more suitable for illegal activities" is being weakened by on-chain transparency and regulatory collaboration capabilities.

Chainalysis tracks the source of the THORChain attack: skilled in money laundering, the attack was carried out weeks after cross-chain fund movements

Chainalysis posted on the X platform that before the theft of THORChain, wallets suspected to be associated with the attacker had been transferring funds through Monero, Hyperliquid, and THORChain for several weeks. The attacker-associated wallets had already deposited into Hyperliquid positions via the Hyperliquid and Monero privacy bridge as early as the end of April. The funds were then exchanged for USDC and transferred to Arbitrum, and later bridged to Ethereum, with some ETH subsequently transferred to THORChain to become staked RUNE for newly added nodes, which are believed to be the source of the attack.Afterward, the attacker bridged some RUNE back to Ethereum and split it into four pathways, one of which went directly to the attacker. After being transferred through intermediate wallets, 8 ETH was sent to the final wallet receiving the stolen funds 43 minutes before the attack. The funds from the other three pathways flowed in the opposite direction. These wallets bridged ETH back to Arbitrum, deposited it into Hyperliquid, and transferred it into Monero through the same privacy bridge, with the last transaction occurring less than 5 hours before the attack began.As of Friday afternoon, the stolen funds have not yet been used, but the attacker has demonstrated their skilled cross-chain money laundering capabilities, and the Hyperliquid to Monero path may become the next move.

Analysis: Bhutan denies selling Bitcoin, on-chain data points to approximately $1 billion in suspected BTC outflows causing controversy

According to CoinDesk, on-chain analysis firm Arkham Data shows that over the past year, wallets associated with Bhutan have seen outflows of approximately $1 billion in Bitcoin, with funds flowing to multiple trading platforms and trading institutions, reducing their holdings from about 13,000 BTC to around 3,100 BTC.Arkham speculates that there may be ongoing selling behavior, and if the trend continues, the relevant addresses may be cleared of holdings before October 2026. However, Bhutan's sovereign fund Druk Holding and Investments (DHI) stated that "they do not recall any recent Bitcoin sales," did not respond to specific changes in on-chain addresses, and did not confirm the current holding size, only emphasizing that there are no additional comments.The report points out that some of the fund inflow paths are related to institutions such as Galaxy Digital and OKX, leading the market to interpret this as selling or over-the-counter trading behavior, but there are also possibilities of transfers into custody, collateralization, or structured trading that do not involve selling. Additionally, some trading institution personnel stated that there has been no clear selling recently.Furthermore, Bhutan's previous commitment to a reserve of 10,000 BTC for the "Gelephu Mindfulness City" project has also been questioned due to potential sell-offs. Currently, there is still significant disagreement regarding its actual holdings and mining operations.
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