Illegal Crypto Asset Transactions Surge by 162% in 2025

In 2025, illegal cryptocurrency transactions surged to over $154 billion, reflecting a staggering 162% increase from the previous year, according to Chainalysis.

This rise is primarily attributed to heightened activity related to sanctions at various levels. The volume of illicit digital assets associated with sanctions has skyrocketed by 694% over the past year.

“While illegal transactions have grown, they still represent a tiny fraction of the overall crypto market, constituting less than 1% of total transactions,” experts noted.

Chainalysis also observed a notable shift in the types of cryptocurrencies being used for illegal activities. Stablecoins comprised 84% of illicit transactions in 2025, a significant change from five years ago when Bitcoin was the dominant asset.

“This trend indicates that stablecoins are increasingly favored for their practical benefits, such as ease of cross-border transfers and lower volatility,” researchers explained.

A considerable portion of these illegal transactions is believed to be linked to government-controlled entities. North Korean hackers had a particularly lucrative year, reportedly stealing over $2 billion, much of which was linked to a breach of the Bybit exchange.

Operations involving ruble stablecoins accounted for roughly $93.3 billion in illegal transactions from Russia, aimed at bypassing international sanctions.

Additionally, Chinese money laundering networks have emerged as a significant provider of services to cybercriminals and sanctioned individuals, while Iranian proxy groups are estimated to have conducted blockchain transactions totaling at least $2 billion.

“Many people still view crypto crimes as a virtual issue, but there’s an alarming real-world connection to violent crime, including human trafficking,” Chainalysis concluded.

Interestingly, losses from crypto phishing scams declined by 83% in 2025, according to findings from SlowMist.