Sanctioned entities increasingly use cryptocurrency to bypass financial restrictions
Global sanctions imposed on nation-states and organizations have pushed illicit cryptocurrency activity to record levels in 2025, as sanctioned actors increasingly turn to blockchain networks to move value outside traditional financial systems. New data shows that sanctions, rather than cybercrime alone, are now the dominant driver of illicit crypto flows.
Illicit crypto addresses received at least $154 billion in 2025, marking a 162% year-over-year increase from $59 billion in 2024. This surge was primarily driven by sanctioned entities, reflecting a shift in how nation-states engage with crypto infrastructure to evade restrictions.
Chainalysis team said;
Russia emerged as a major contributor following the launch of its ruble-backed A7A5 token in February 2025, which processed over $93.3 billion in transactions within a year amid ongoing sanctions linked to the Ukraine conflict.
By May 2025, the Global Sanctions Inflation Index estimated nearly 80,000 sanctioned entities and individuals worldwide. The United States alone added 3,135 entities to its sanctions list in 2024, signaling an unprecedented expansion in enforcement.
Stablecoins accounted for 84% of illicit crypto transaction volume, mirroring trends seen in legitimate markets due to low volatility, cross-border efficiency, and liquidity.Despite the growth, illicit crypto usage still represents less than 1% of total transaction volume, while fiat currency remains the primary channel for global criminal finance.
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