According to ZachXBT, the overall environment has worsened in recent months, driven by a confluence of factors—ranging from politicians launching memecoins to high-profile legal cases being dismissed. He specifically highlighted the activities of the notorious North Korean-affiliated Lazarus Group, which has recently managed to launder proceeds from several high-profile hacks, including Bybit, DMM Bitcoin, and WazirX, with minimal resistance.

These laundering operations are reportedly enabled by a network of small OTC brokers and money laundering rings that exploit weak regulatory oversight. ZachXBT estimates the size of the black market for stablecoins on TRON to be in the range of $5–10 billion. He adds that the overwhelming majority of these assets are not directly linked to identifiable individuals, further complicating enforcement efforts.

“Most of the fees earned by some protocols come from volumes related to stolen funds, yet development teams often remain inactive, collecting revenue regardless of the source,” the analyst wrote, taking aim at projects that fail to address illicit flows.

ZachXBT also criticized social media influencers for promoting fraudulent projects, as well as the legal system, which in his view too often sides with bad actors due to outdated legislation. The current climate, he warned, is “the worst time for phishing and social engineering attacks”—with “grey market” practices appearing less risky and more lucrative than ever.

TRON stablecoin market faces illicit activity surge

For context, Curve Finance founder Mikhail Egorov has previously asserted that crypto hackers are increasingly acting as organized mercenaries, executing targeted attacks to order and coordinating operations across international lines.