Illicit Crypto Economy Surges as Nation-States Join in the Fray

Illicit cryptocurrency transactions grew more than 160% in 2025 to total at least $154 billion, driven by sanctioned countries such as Russia, Iran and North Korea.

The value of the identified illicit blockchain transactions was dominated by Russia, which passed legislation in 2024 to skirt sanctions via cryptocurrency and launched a ruble-backed A7A5 token in 2025, according to data released by Chainalysis; overall, at least $93 billion in cryptocurrency transactions came from Russia’s new token, the main driver behind a near sevenfold surge in volumes by sanctioned entities.

Large transnational money-laundering networks run by Chinese criminal syndicates throughout Southeast Asia account for the lion’s share of these transactions, said Andrew Fierman of Chainalysis. The report notes that almost every other category of cryptocurrency-enabled crime grew as well, with the UN’s crime body and Interpol highlighting ongoing laundering activity and investigations.

In 2025, stablecoins accounted for about 84% of illicit money flows, a trend Chainalysis attributes to easier transfer and stability in sanctions environments. There is also a silver lining in law-enforcement efforts, including the seizure of more than 127,000 bitcoin last year, valued at around $15 billion.