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A first look at Chainalysis’ annual crypto crime report reveals that crypto addresses linked to criminal operations brought in at least $154 billion in 2025, shattering previous records with a 162% jump from the previous year’s revised figure of $57.2 billion. This rise largely comes from sanctioned entities, which saw their inflows increase by 694% year-over-year, signaling a shift where crypto is increasingly geopolitically relevant and used to circumvent financial sanctions and restrictions of the traditional banking system.
The firm the data traces this upward trajectory compared to just $11 billion in 2020, and Chainalysis points out that these numbers represent a conservative baseline, as ongoing investigations often reveal more suspicious addresses. For example, the estimate for 2024 increased from an initial $40.9 billion to $57.2 billion after more illicit addresses were identified.
Specific nation-state maneuvers identified in the report include those of North Korean hackers, who made $2 billion from thefts including the record $1.5 billion exploit against crypto exchange Bybit in February. Russia has deployed its A7A5 token pegged to the ruble for circumventing sanctions in the same month, accumulating $93.3 billion in transactions in its first year. Meanwhile, Iran-linked networks have laundered more than $2 billion for secret oil exports, arms sales and other activities.
Beyond state exploits, the report highlights growing professionalism in clandestine networks. Chinese money laundering organizations have cornered the market on “laundering as a service,” assisting with everything from fraud to terrorist financing. The numbers associated with these projects can reach staggering levels. For example, a pig slaughter scheme, in which victims are tricked into investment scams via romantic conversations on the phone, is at the center of the case. dispute between the United States and China over $13 billion in bitcoins.
Stablecoins have become the preferred vehicle for crypto crime in 2025, accounting for 84% of illicit flows thanks to the short-term price stability associated with these dollar-pegged tokens. Despite built-in compliance features such as the ability to freeze funds, bad actors appear undeterred. This trend aligns with changes in US policy under the Trump administration, where officials touted stablecoins to expand U.S. economic influence. The GENIUS Act, which was signed into law last year, formalized the oversight of these assets, sparking a massive boom in adoption and development by banks and tech companies.
Yet questions remain about the true innovative benefit of stablecoins, as much of their appeal appears to be rooted in circumventing stringent anti-money laundering controls. The industry’s pivot to these centralized tokens has intensified, with issuers like Circle and Tether directing traffic to more centralized or even proprietary blockchains compared to more decentralized options like Ethereum.
On the other hand, altcoins, which notably include privacy coins like Monero and Zcash, have seen their illicit share decline. Along the same lines, a recent CoinDesk article noted Online Criminals Ditch Monero for Bitcoin Amid Exchange Delistings, Tighter Controls. Nonetheless, privacy themes overall gained traction in 2025, highlighted by Zcash price hikes, some of which were brought down by recent controversy at Electric Coin Company which saw its key developers leave the company amid accusations of losing its mission.
That said, Chainalysis says identifiable illicit transactions still accounted for less than 1% of total crypto transactions in 2025. And Bitcoin’s transparent design, with its pseudonymous ledger and close monitoring of exchanges, makes it easier for companies like Chainalysis to track and cooperate with law enforcement.
While decentralized networks with cypherpunk roots like Bitcoin and Monero can withstand shutdowns, stablecoins operate in a centralized, issuer-backed model that invites regulatory crackdowns if criminal activity spirals out of control. Lawmakers or regulators could eventually decide that the increased monetary dominance enabled by frictionless stablecoins is not worth the tradeoffs associated with the criminal activity associated with these tokens.
