Illicit Cryptocurrency Activity Reaches $154 Billion Amid Sanctions

In a recent report, Chainalysis highlights a significant rise in illicit cryptocurrency transactions, which hit $154 billion in 2025. This surge is primarily driven by sanctioned nation-states utilizing stablecoins and the newly introduced ruble token A7A5, as hacking and scams also continue to escalate.

Key Takeaways

Illicit cryptocurrency activity soared to $154 billion in 2025, a 162% increase from $59 billion in 2024.
The report cites sanctioned countries, particularly Russia, as major players in this increase.
Stablecoins comprised 84% of all illicit transaction volumes in 2025, due to their price stability and liquidity.
Despite the growth in illicit activities, they still represent less than 1% of the total on-chain activity in the crypto economy.
Notable criminal cases include a $16 million theft involving impersonation of Coinbase employees.

Chainalysis: illicit crypto surges to $154B in 2025

Significant Rise in Illicit Crypto Activity

According to Chainalysis, illicit cryptocurrency operations reached unprecedented levels in 2025 as sanctioned countries and entities turned to blockchain networks to evade financial restrictions. The report indicates that illicit crypto addresses received a staggering $154 billion during the year, marking a significant 162% increase compared to $59 billion in 2024. This surge is mainly attributed to sanctioned entities conducting large-scale transactions on-chain.

The report identifies 2025 as a pivotal year, noting “unprecedented volumes linked to nation-states’ on-chain actions.” It highlights a new phase in the development of the illicit crypto landscape, with sanctioned actors exhibiting increasingly sophisticated operational methods.

Key Actors in Illicit Activities

Russia, heavily sanctioned following its invasion of Ukraine, has been identified as a significant contributor to this increase. In February 2025, Russia launched A7A5, a ruble-backed token, which managed to process over $93.3 billion in transactions in under a year.

The expanding global sanctions have heightened the pressure on sanctioned individuals and entities to find alternative payment methods. A report by the Global Sanctions Inflation Index in May estimated nearly 80,000 entities and individuals are currently affected by sanctions worldwide. Research from the Center for a New American Security revealed that the United States added 3,135 entities to its Specially Designated Nationals and Blocked Persons List in 2024, marking the highest annual total recorded.

The Role of Stablecoins

Chainalysis reported that stablecoins made up 84% of the total illicit transaction volume in 2025. This is largely due to their stability, ease of cross-border transfers, and ample liquidity—all features that facilitate both legitimate uses and attract sanctioned individuals.

Despite the considerable rise in illicit transactions, Chainalysis emphasizes that these activities still represent a minor portion of the overall cryptocurrency economy. Illicit transactions accounted for less than 1% of total on-chain activity, although their share has seen a slight uptick year over year.

Security Challenges in the Crypto Space

The blockchain security company PeckShield recorded 26 major exploits in December alone, with address-poisoning scams and private key leaks causing substantial financial losses. One victim reportedly lost $50 million after mistakenly sending funds to a fraudulent address that closely resembled the intended recipient. Additionally, a private key leak linked to a multi-signature wallet resulted in losses nearing $27.3 million.

On another note, Ronald Spektor of Brooklyn has been charged with allegedly stealing $16 million from around 100 Coinbase users by impersonating employees of the exchange, according to legal documents.

This growing trend in illicit cryptocurrency activities underscores the increasing complexities and risks within the crypto space, highlighting the need for enhanced security measures and heightened awareness among users.