Mohammedia – Crypto crime hit a record high in 2025 amid a sharp rise in nation-state activity and sanctions evasion, according to new data released by Chainalysis.
Illicit cryptocurrency addresses received at least $154 billion over the year, marking a 162% increase year on year and the highest total ever recorded.
Even without growth in sanctioned entity activity, 2025 would still have surpassed previous records, as increases were seen across nearly all major illicit categories.
The findings show how crypto crime has moved through distinct phases over the past 15 years, evolving from small-scale cybercrime into a highly professionalized ecosystem and, most recently, into a tool used by nation-states at scale.
While illicit activity still represents less than 1% of all attributed crypto transaction volume, the absolute value involved has reached levels that raise significant consumer protection and national security concerns.
Nation-states drive a surge in illicit crypto volumes
The largest contributor to growth in 2025 was sanctioned entities, which saw a 694% increase in value received compared to 2024.
Nation-state actors increasingly relied on crypto infrastructure originally built for organized crime, either by using established illicit service providers or by creating their own systems.
Russia emerged as a major driver of volume after launching its ruble-backed A7A5 token in February 2025. In less than one year, the token facilitated more than $93.3 billion in transactions, making it one of the largest known tools for on-chain sanctions evasion.
Iran-linked networks also continued to use cryptocurrency for money laundering, illicit oil sales, and procurement, moving more than $2 billion through wallets identified in sanctions designations.
Iran-aligned groups, including Hezbollah, Hamas, and the Houthis, were found to be using crypto at levels not previously observed.
Stolen funds remained a major threat in 2025. Hackers linked to North Korea alone stole $2 billion over the year, driven largely by several mega-hacks.
The most significant was the February Bybit exploit, which resulted in losses of nearly $1.5 billion, making it the largest digital theft in crypto history.
Stablecoins dominate as illicit activity becomes more organized
The report shows a clear shift in the types of assets used for crypto crime. Stablecoins accounted for 84% of all illicit transaction volume in 2025, up sharply from earlier years.
This reflects broader market trends, as stablecoins offer lower volatility, easier cross-border transfers, and greater utility than other assets.
Bitcoin’s share of illicit activity continued to fall, dropping from over 70% in 2020 to less than 10% in 2025, while Ethereum and altcoins also declined in relative use.
At the same time, illicit organizations became more structured. Chinese money laundering networks emerged as a dominant force, offering laundering services, infrastructure, and support for scams, sanctions evasion, ransomware, and terrorist financing.
The data also points to a growing link between crypto and violent crime. Human trafficking networks increasingly used cryptocurrency, while physical coercion attacks rose, with criminals using violence to force victims to transfer digital assets.
Despite the record figures, Chainalysis stressed that illicit volumes remain a small share of the broader crypto economy.
Still, the scale, organization, and state involvement seen in 2025 mark a turning point, highlighting the growing challenge facing regulators, law enforcement, and crypto businesses worldwide.
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