Illicit crypto activity expanded sharply in 2025
A new report from blockchain analytics firm Chainalysis says illicit cryptocurrency transactions reached at least $154 billion in 2025, representing a 162% year-over-year increase. According to the report, the rise reflects a broader expansion of organized crypto-enabled crime, with illegal networks operating extensive on-chain infrastructure to move funds, obtain goods and services, and launder criminal proceeds across borders.
Chainalysis said state-linked activity became far more prominent in the crypto sector during 2025, adding to the scale and complexity of the illicit ecosystem. The firm also noted that activity increased across most categories of crypto crime. Even without the most dramatic spike in one segment, 2025 would still have been a record year for illicit crypto flows, suggesting that the trend is broad-based rather than isolated.
Sanctioned entities drove much of the increase
One of the report’s most notable findings is the 694% surge in funds received by sanctioned entities. That jump indicates a major increase in the ability of sanctioned actors to use crypto networks for value transfer and financial access outside traditional channels. Chainalysis said these networks support transnational criminal operations, making enforcement and monitoring considerably more difficult.
The data also points to a more mature illicit infrastructure on-chain. Rather than using crypto only for direct transfers, criminal organizations are increasingly relying on blockchain-based systems for a wider range of activities, including settlement, procurement, and laundering. That shift raises the stakes for compliance teams, investigators, and regulators trying to map and disrupt these flows.
Stablecoins now dominate illicit transaction volume
The report further found that stablecoins accounted for 84% of all illicit trading volume. This makes them the dominant asset class in illegal crypto activity. Compared with more volatile tokens, stablecoins offer relative price stability, stronger liquidity, and easier transfer across platforms, features that can make them more attractive for unlawful use.
Overall, the report paints a picture of an illicit crypto economy that is becoming larger, more structured, and more adaptive. As digital assets play a bigger role in global finance, Chainalysis’ findings highlight the growing importance of on-chain surveillance, sanctions compliance, and risk controls across the industry.