Illicit Cryptocurrency Transactions Surge to Record $154 Billion in 2025, Driven by Sanctioned Nations

Unprecedented Surge in Crypto Crime

Illicit cryptocurrency transactions reached a record $154 billion in 2025, marking a dramatic escalation in criminal activity within the digital asset ecosystem, according to newly released data from blockchain analytics firm Chainalysis ^[1][2]. This figure represents a 162% increase compared to the previous year ^[1][2].

The surge was primarily driven by sanctioned entities, which accounted for a staggering 694% growth in illicit cryptocurrency volumes ^[1][2]. However, even excluding sanctioned actors from the calculation, 2025 would still represent a record year for crypto-related criminal activity, as most categories of illicit behavior experienced increases ^[2].

Chainalysis emphasized that these figures represent conservative estimates based only on currently identified illicit addresses ^[2]. The comprehensive annual Crypto Crime Report is scheduled for publication in February ^[2].

Nation-State Activity Dominates Landscape

The most significant trend identified in 2025 was the dramatic rise of nation-state involvement in cryptocurrency-based criminal operations ^[1]. Russia's ruble-backed A7A5 token alone processed over $93.3 billion in transactions during its first year, serving as a prominent example of state-backed sanctions evasion through cryptocurrency ^[1].

Iran continued leveraging proxy networks for money laundering, illicit oil sales, and arms procurement, channeling more than $2 billion through wallets identified in sanctions designations ^[1]. North Korea intensified its cyber operations, with DPRK-linked hackers stealing $2 billion throughout the year ^[1]. This included the largest cryptocurrency heist on record: the February Bybit exploit, which netted nearly $1.5 billion ^[1].

These developments signal a fundamental shift, with nation-states now participating in the same professionalized cryptocurrency service infrastructure originally designed for cybercrime and organized crime ^[1].

Stablecoins Emerge as Preferred Criminal Tool

Stablecoins dominated illicit cryptocurrency activity in 2025, accounting for 84% of all illicit transaction volume ^[1][2]. This preference stems from their liquidity, price stability, and ease of cross-border transfers ^[1]. Meanwhile, Bitcoin's share of criminal transactions continued to decline ^[2].

Chinese Networks and Other Threats

Chinese money laundering networks consolidated their position as major players in the illicit ecosystem, offering comprehensive services including laundering-as-a-service and technical infrastructure ^[1]. These operations support activities ranging from laundering North Korean hack proceeds to sanctions evasion and terrorist financing ^[1].

Chainalysis also observed increased hacking activity from North Korea, new trends in Chinese fraud networks, and cryptocurrency usage by terrorist organizations such as Hamas "on an unprecedented scale" ^[2]. However, terrorism financing remains responsible for only a small fraction of criminal transaction volume ^[2].

Context and Proportions

Despite the record absolute figures, illicit cryptocurrency activity remains below 1% of total cryptocurrency transaction volume, though this percentage increased slightly compared to 2024 ^[2]. By comparison, the United Nations Office on Drugs and Crime estimates that 2-5% of global economic output annually is attributable to money laundering ^[2].

The report highlighted that cryptocurrency crime increasingly intersects with physical-world violence, including human trafficking operations and coercion attacks, sometimes timed to exploit cryptocurrency price volatility ^[1]. This convergence underscores the importance of coordination among law enforcement, regulatory bodies, and cryptocurrency platforms ^[1].