Illicit crypto transactions jumped sharply in 2025, hitting record levels as sanctioned nation-states increasingly turned to blockchain networks to move money outside the traditional financial system. The findings come from a new report published by blockchain analytics firm Chainalysis.
According to the report, wallets linked to illicit activity received at least $154 billion in 2025, a dramatic rise from $59 billion in 2024. That marks a 162% increase year over year. Chainalysis says the spike was driven primarily by sanctioned entities shifting large volumes of funds on-chain, making 2025 a clear turning point in how crypto is used under global financial pressure.
The firm described the past year as a phase of “unprecedented volumes associated with nation-states’ on-chain behavior,” noting that the activity appeared more coordinated and sophisticated than in previous years. Rather than small-scale criminal groups dominating the data, state-linked players now account for a meaningful share of illicit flows.
Russia’s A7A5 token in the spotlight
Russia stood out prominently in the report. After facing sweeping sanctions in response to its invasion of Ukraine, the country introduced a ruble-backed token known as A7A5 in February 2025. In less than a year, the token handled over $93.3 billion in transactions, underscoring how digital assets are being used alongside traditional economic tools.
The global sanctions environment has been tightening as well. The Global Sanctions Inflation Index estimated in May that nearly 80,000 entities and individuals were subject to sanctions worldwide. Meanwhile, research from the Center for a New American Security reported that the United States added 3,135 entities to its Specially Designated Nationals and Blocked Persons List in 2024, the highest annual total ever recorded.
Stablecoins dominate illicit flows
One of the most striking details in the Chainalysis report is the role of stablecoins. They accounted for 84% of illicit transaction volume in 2025. Their popularity among sanctioned users stems from the same qualities that attract legitimate users — price stability, easy cross-border transfers, and deep liquidity.
Even with the surge in illicit activity, crypto crime still represents a small share of total on-chain transactions. Chainalysis notes that illegal activity remains under 1% of overall crypto usage, although the proportion did increase slightly compared with the previous year.
Hacks and scams persist
Security risks continue to cast a shadow over the industry. Blockchain security firm PeckShield recorded 26 major exploits in December alone, alongside multiple large-scale scams.
In one case, a victim lost $50 million after copying a fraudulent crypto address that visually resembled the intended one — part of a growing trend known as address poisoning. In another incident, a private key leak linked to a multi-signature wallet resulted in losses of about $27.3 million.
Meanwhile, legal troubles are mounting for alleged scammers operating off-chain. Brooklyn resident Ronald Spektor has been charged with allegedly stealing $16 million from around 100 Coinbase customers by posing as a company employee, according to court filings.
Despite the risks and rising illicit activity, Chainalysis emphasizes that crypto’s legitimate economy remains vastly larger. But as sanctions expand and digital tools evolve, the tug-of-war between regulators and on-chain actors shows no signs of slowing down.
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