- Chainalysis recorded $154 billion in illicit inflows, driven largely by sanctioned entities.
- The Russian token A7A5, backed by the ruble, processed more than $93.3 billion in transactions in one year.
- Illicit transactions remain under 1% of overall on-chain activity despite rapid growth.
Cryptocurrency-related illicit activity grew rapidly in 2025, not because everyday crypto crime suddenly surged, but because sanctioned states and entities changed how they move funds. As global financial restrictions expanded, blockchain networks increasingly served as alternative channels for cross-border transfers—channels that are more difficult to block or monitor using traditional systems.
A new report from Chainalysis shows this shift is changing the shape, scale, and participants within the illicit crypto ecosystem. Chainalysis estimates that illicit crypto addresses received at least $154 billion in 2025, a 162% increase from $59 billion in 2024. Much of this growth is attributed to sanctioned actors moving large volumes of funds on-chain.
Although illicit activity still represents less than 1% of total crypto transaction volume, its rapid expansion highlights how sanctions policy is reshaping blockchain use in unprecedented ways.
Sanctions push activity on-chain
Chainalysis describes 2025 as a turning point marked by unprecedented volume tied to state behavior. Unlike earlier phases dominated by hacks, scams, and darknet markets, recent activity shows higher levels of coordination and technical sophistication. This reflects growing familiarity with blockchain tools among sanctioned entities facing restricted access to the global banking system.
The scale of sanctions worldwide has increased sharply. A global sanctions inflation index estimated in May that nearly 80,000 individuals and entities are currently sanctioned. A separate study from the Center for a New American Security found that the United States added 3,135 entities to its Specially Designated Nationals and Blocked Persons list in 2024—the highest annual total on record. This expanding sanctions environment raises incentives to seek alternative settlement systems.
The growing role of Russia
One of the main contributors to higher illicit crypto flows has been Russia, which has faced significant international sanctions since its invasion of Ukraine. In February 2025, Russia launched a ruble-backed digital token known as A7A5. According to Chainalysis, the token processed more than $93.3 billion in transactions in less than a year.
The use of a state-linked token illustrates how sanctioned governments are experimenting with blockchain-based instruments to preserve commercial and financial connectivity. This approach differs from earlier patterns in which states were mostly indirect beneficiaries of illicit networks rather than active participants in token-based systems.
Stablecoins take center stage
Stablecoins dominated illicit crypto activity through 2025, accounting for 84% of the total illicit transaction volume. Chainalysis links this to stablecoins’ price stability, strong liquidity, and ease of cross-border transfer. The same features that support legitimate payments and remittances also make stablecoins attractive to sanctioned users seeking predictable settlement.
The growing reliance on stablecoins signals a shift away from volatile assets for illicit transfers. Instead of speculative trading, the focus is on efficiency, reliability, and scale—especially for high-value transactions involving sanctioned entities.
Crime remains a smaller share
Despite record illicit volumes, Chainalysis emphasizes that criminal activity remains a relatively small fraction of the broader crypto economy. Overall on-chain activity rose significantly during the year, keeping illicit transactions below 1% of total volume even as absolute values surged.
Other forms of crypto crime continued alongside sanction-driven flows. Security firm PeckShield documented more than 20 major exploits in December, including address-poisoning scams and private key leaks that caused losses in the tens of millions of dollars.