A recent Chainalysis report shows that sanctioned groups moved around $104 billion in cryptocurrency during 2025. This activity made up most of the illegal transactions happening on blockchains that year.
A new report, the 2026 Crypto Crime Report, shows that illegal crypto addresses received at least $154 billion in 2025. The increase is largely due to a significant rise in crypto activity connected to sanctioned organizations.
The report shows a massive increase – 694% – in cryptocurrency activity linked to sanctions compared to last year, demonstrating that digital assets are playing an increasingly important part in international financial dealings related to geopolitical events.
Sanctions activity drives illicit crypto surge
For a long time, illegal activity involving cryptocurrency has been linked to hacking and scams. However, a new report indicates that avoiding sanctions now represents the biggest portion of these illegal transactions.
In 2025, a total of $154 billion in illegal cryptocurrency transactions were recorded, and roughly two-thirds of that amount—around $103 billion—involved entities that were sanctioned.
Sanctioned entities are governments, banks, and other organizations that are blocked from using regular financial services due to international rules and laws.
In my analysis, we’re seeing a clear trend of geopolitical factors driving activity in the digital asset space. Specifically, I’ve identified networks linked to Russia, Iran, and North Korea increasingly using these assets to transfer funds internationally. It appears they’re turning to digital currencies as a way to bypass traditional financial systems.
According to the report, hackers believed to be connected to North Korea stole approximately $2 billion worth of cryptocurrency in 2025.
Stablecoins dominate illicit transaction flows
The report also highlights a shift in the types of digital assets used in illicit activity.
Stablecoins were involved in 84% of all illegal cryptocurrency transactions, showing how important they’ve become for moving money around the world.
The growing popularity of stablecoins—tokens pegged to the U.S. dollar—indicates that people trying to avoid sanctions or move money across borders might prefer these more stable digital assets over cryptocurrencies with fluctuating prices.
Illicit activity remains a small share of crypto economy
As a researcher analyzing this data, I found that even with record-breaking numbers in cryptocurrency activity, illegal transactions still make up a very small portion – less than 1% – of all activity worldwide.
Companies that analyze blockchain data report that the openness of public blockchains is still helping to track down and prosecute people involved in illegal activities.
The report also cautions that criminals are getting better at hiding money. They’re now using more complex methods like money laundering services and transferring funds across different cryptocurrency networks to cover their tracks.
Criminal infrastructure becoming more organized
The report also highlights the growing number of organized networks using cryptocurrency to hide illegal money, providing them with the financial systems they need.
These systems frequently use a mix of services – like swapping assets between different blockchains, private brokers, and decentralized financial platforms – to transfer and hide money.
From my perspective as an analyst, what we’re seeing isn’t just random hacking anymore. It’s a real evolution of cybercrime – it’s becoming more organized. Criminals are now building entire systems where different groups specialize in specific parts of the process, like moving money after a breach. It’s less about individuals and more about professionalized services handling each step of the illegal financial activity.
Final Summary
- Sanctioned entities accounted for roughly $104 billion of the $154 billion in illicit crypto activity recorded in 2025, according to the report.
- Despite record figures, illicit transactions still account for less than 1% of global cryptocurrency activity.
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2026-03-06 00:57