Illicit cryptocurrency transactions reached $154 billion in 2025 as sanctioned governments and entities increasingly used blockchain networks to circumvent international financial restrictions.
What Happened: Sanctions Evasion
Chainalysis documented a 162% surge in illicit crypto activity from $59 billion in 2024.
The blockchain analytics firm attributed the jump to unprecedented volumes of nation-state on-chain behavior, with sanctioned entities moving funds at scale outside traditional financial systems.
Russia emerged as a major contributor after launching the ruble-backed A7A5 token in February 2025.
The state-linked token processed more than $93.3 billion in transactions within its first year, demonstrating how sanctioned actors route value through crypto networks.
The Global Sanctions Inflation Index estimated in May that nearly 80,000 entities and individuals faced sanctions globally.
The Center for a New American Security found that the United States added 3,135 entities to its Specially Designated Nationals and Blocked Persons List in 2024, the highest annual total on record.
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Why It Matters: Ecosystem Evolution
Stablecoins accounted for 84% of all illicit transaction volume in 2025, driven by price stability and cross-border transfer ease.
Chainalysis noted these assets "now account for 84% of all illicit transaction volume," mirroring broader trends where stablecoins occupy "a sizable and growing percentage of all crypto activity due to their practical benefits: easy cross-border transferability, lower volatility, and broader utility."
The analytics firm stressed that criminal activity still represents less than 1% of total on-chain activity despite the sharp rise in absolute volumes.
"Our estimate for the illicit share of all attributed crypto transaction volume increased slightly from 2024 but remains below 1%," the report stated.
PeckShield documented 26 major exploits in December, with address-poisoning scams and private-key leaks causing substantial losses.
One victim lost $50 million after copying a fraudulent address, while another incident involving a multi-signature wallet leak resulted in approximately $27.3 million in losses.
Chainalysis described 2025 as marking "the latest phase in the maturation of the illicit on-chain ecosystem," noting that "as nation-states plug into the illicit crypto supply chains originally built for cybercriminals and organized crime groups, government agencies and compliance and security teams now face significantly higher stakes on both the consumer protection and national security fronts."
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