Illegal crypto trading hits record: $154 billion in 2025, sanctioned countries drive surge in on-chain activity

2026-01-09 10:23:00

Source: Cryptonews Original Title: Illicit crypto flows hit $154B as sanctions drive record on-chain activity Original Link:

Background

According to the latest report released by blockchain analysis firm Chainalysis, illegal cryptocurrency activities reached a record high in 2025, with sanctioned countries and entities increasingly utilizing blockchain networks to evade financial restrictions.

Key Data

Illegal crypto addresses received at least $154 billion in 2025, a 162% increase from $59 billion in 2024. This surge is mainly driven by large-scale fund transfers onto the chain by sanctioned entities.

Chainalysis describes 2025 as a turning point, noting “unprecedented on-chain transaction volumes related to state-level actions,” and characterizes it as the latest stage in the evolution of the illegal crypto ecosystem. The company observed that the scale and coordination of transaction activities differ from previous years, reflecting higher precision among sanctions participants.

Russia A7A5 Token Drives Growth

Russia, facing widespread international sanctions, has become a major contributor to growth. In February 2025, the country launched a ruble-backed token, with the code A7A5. This token processed over $93.3 billion in transactions in less than a year.

The expansion of global sanctions has increased pressure on sanctioning parties to seek alternative payment systems. The global sanctions inflation index estimated in May that nearly 80,000 entities and individuals worldwide are under sanctions. Research from the U.S. new security center found that in 2024, the U.S. added 3,135 entities to its Specially Designated Nationals and Blocked Persons list, setting a record for the highest annual increase.

Stablecoins Dominate Illegal Transactions

Stablecoins accounted for 84% of all illegal transaction volume in 2025. Chainalysis attributes their popularity to price stability, ease of cross-border transfers, and widespread liquidity. The same features that drive legitimate applications also attract sanctioned users.

Crime Remains a Small Part

Despite a significant increase in illegal transaction volume, criminal activities still constitute a very small part of the entire crypto economy. Chainalysis reports that illegal transactions account for less than 1% of total on-chain activity, although their share has slightly increased year-over-year.

Security Risks Persist

Blockchain security firm PeckShield recorded 26 major exploit events in December, involving address poisoning scams and private key leaks, resulting in substantial losses. According to the firm’s data, one victim lost $50 million after copying a fraudulent address visually mimicking the intended target address. Another incident involved private key leaks related to multi-signature wallets, causing approximately $27.3 million in losses.

Additionally, Brooklyn resident Ronald Spektor faces charges for allegedly impersonating an employee of a compliant platform and stealing $16 million from about 100 users.

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CryptoNomics

· 01-12 08:21

ok but did chainalysis actually account for all the privacy coin mixers in their correlation matrix? because a 162% jump screams statistical artifact to me, not genuine illicit flow expansion. their methodology has always been sketchy with endogenous bias issues.

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PoolJumper

· 01-12 08:20

Wow, 154 billion? The growth rate is really outrageous. Sanctions have actually accelerated the onboarding, how ironic.

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MetaverseLandlord

· 01-09 14:47

Wait, is 154B real? Sanctioned countries are so aggressively going on-chain, regulators will have to step up their efforts.

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SmartContractWorker

· 01-09 10:53

154B, last year it was only 59B, more than doubling... As expected, the stricter the sanctions, the more it needs to be on-chain. This logic makes sense.

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MissedAirdropBro

· 01-09 10:52

162% growth... Wow, these numbers are a bit outrageous. No wonder regulators are tense every day.

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AllInAlice

· 01-09 10:50

Hmm... 154 billion, that's a pretty impressive number. Sanctions have actually accelerated on-chain activity? That's a bit ironic. --- 162% growth—feels like the stricter the regulations, the more people find ways around them. What's this magic spell? --- With such high on-chain privacy, no wonder it has become the preferred safe haven. But if this continues, it will attract more regulation. --- Honestly, this data actually reflects the failure of the traditional financial system, not a problem with crypto itself. --- I always feel like these reports are made to target regulators. How is Chainalysis's business so easy to do? --- Countries under sanctions are using blockchain now. Could this be another positive for BTC? Thinking about it, it's quite heartbreaking. --- 154 billion sounds huge, but it doesn't make up a large proportion of the entire crypto market. The way the data is presented is too subjective. --- Anyone familiar with blockchain knows how difficult it is to track. The credibility of Chainalysis's numbers... hmm, I’ll put a question mark.

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CryptoPhoenix

· 01-09 10:44

1540 billion USD... As soon as I saw this number, I knew that regulation was bound to come eventually, and the bottom opportunity window has narrowed again. --- Surged by 162%? Sanctioned countries are active on the chain frequently, what does that indicate? The value of the crypto world is being redefined, opportunities and risks coexist. --- It's another moment that tests patience. Looking at the data might cause panic, but from another perspective, it just shows the resilience of the chain. Believers, just wait. --- What lies behind the 162% growth? Evasion, demand, and the market's self-correction. Before rebirth, some things must be experienced. --- Brothers, don't rush to get off. Stricter regulation actually proves the value of this thing. The time of the big waves and淘沙 has arrived. --- Every time I see such data, I feel anxious, but 2018 taught me a lesson: bad news is often the final cleansing. --- This wave really tests people, but remember, only those who can survive the cycle are the winners. Emotional recovery is just preparing for the next round.

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