Illicit cryptocurrency activity climbed to a record $154 billion in 2025, driven largely by sanctions evasion by nation-states leveraging blockchain networks, according to a recent Chainalysis report. The study shows funds sent to sanctioned entities surged 694% year over year, making sanctions evasion the fastest-growing segment of crypto crime. A notable trend is the growing involvement of governments and state-aligned actors in on-chain crime infrastructure.
Chainalysis notes that sanctioned jurisdictions are using digital assets to bypass financial restrictions and move money across borders. Russia has issued a ruble-backed token called A7A5, which traded more than $93 billion in under a year and was used to facilitate sanctions evasion. North Korea remained the leading state-linked hacker group, allegedly stealing about $2 billion in crypto in 2025, including a nearly $1.5 billion breach of the Bybit exchange—the largest on-record crypto theft.
Iranian networks have also stepped up crypto use to support oil sales, arms procurement, and money laundering, moving over $2 billion through wallets tied to sanctioned entities. Taken together, these patterns indicate a shift from lone criminals to state-aligned ecosystems operating on-chain. Stablecoins have become the primary vehicle for illicit crypto activity, with Chainalysis reporting that 84% of illicit transaction volume now involves stablecoins, reflecting their growing role across the broader crypto economy due to their price stability and cross-border usability. These networks provide “laundering-as-a-service” infrastructure, processing funds from scams, hacks, and sanctions-related activity.
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