Due to ongoing sanctions against nation-states last year, the total amount of cryptocurrencies received from fraudulent addresses reached an all-time high as blacklisted entities attempted to evade sanctions on a large scale.
Blockchain analysis firm Chainalysis said on Thursday in its 2026 Crypto Crime Report that there was an “unprecedented volume associated with nation-state on-chain actions” throughout 2025.
Illegal cryptocurrency addresses received at least $154 billion in 2025, an increase of 162% year over year from $59 billion in 2024, primarily due to amounts received by sanctioned entities.
At the same time, Russia, facing sanctions over its invasion of Ukraine, launched its ruble-backed A7A5 token in February 2025, transacting more than $93.3 billion in less than a year.
“In 2025, we tracked a notable increase in state-state activity in cryptocurrencies, marking the latest stage in the maturation of the illicit on-chain ecosystem,” the Chainalysis team said.
sauce: chain analysis
The Global Sanctions Inflation Index estimated in May that the total number of entities and persons subject to sanctions around the world was just under 80,000. The Center for a New American Security revealed that in 2024, the United States alone imposed an “unprecedented” number of sanctions, with 3,135 entities added to the list of Specially Designated Nationals and Blocked Persons.
Illegal use of stablecoins reflects legitimate activity
Just as stablecoin trading volumes have surged in the last year, a similar trend is emerging in illegal circles, with stablecoins accounting for the majority of illegal transactions, accounting for 84% of total trading volume, according to Chainalysis.
“This reflects a broader ecosystem trend where stablecoins represent a significant and growing portion of all cryptocurrency activity due to practical benefits such as ease of cross-border transfer, low volatility, and broad utility,” the Chainaracy team said.
Illegal use of cryptocurrencies accounts for less than 1% of all sent volumes
Chainalysis speculates that fraudulent crypto addresses will likely receive increased value as 2026 progresses as we identify more fraudulent addresses. However, this is still just a drop in the ocean, and 99% of cryptocurrency transactions are not related to fraud.
“These illicit transaction volumes remain dwarfed by the broader cryptoeconomy, which is largely comprised of legal transaction volume,” the chainalysis team said, adding that “the illicit share of all attributable cryptocurrency transaction volume has increased slightly since 2024, but remains below 1%.”
Meanwhile, fiat currencies remain the primary means of illicit transfers.
The United Nations Office on Drugs and Crime has previously estimated that the value of global proceeds of crime is equivalent to approximately 3.6% of the world’s domestic production.
