Recent data examining blockchain activity associated with sanctioned entities shows that virtual currencies are increasingly being used by sanctioned countries to facilitate cross-border trade, financial proxy networks, and move funds outside of traditional financial systems.
In 2025 alone, illegal cryptocurrency addresses cost approximately $154 billion, an increase of 162% from the previous year. Much of this increase was attributable to sanctioned entities, which received $104 billion, an increase of 694% from the previous year.
Sanctions Enforcement Expands Across Cryptocurrency Networks
In 2025, regulators in the United States, Europe, and the United Kingdom strengthened joint enforcement actions targeting crypto activity related to sanctions evasion and illicit finance.
Agencies such as the U.S. Office of Foreign Assets Control (OFAC), the European Union, and the U.K. Financial Sanctions Enforcement Office have expanded sanctions designations for cryptographic infrastructure associated with ransomware groups, nation-state-linked networks, and services used to circumvent restrictions.
The European Union has also introduced measures targeting Russian cryptocurrency providers and the ruble-backed A7A5 stablecoin. The token processed approximately $93.3 billion in transactions within 10 months. This shows how digital assets are being used to settle cross-border transactions outside of traditional banking channels.
Legal debates surrounding decentralized technology also influenced enforcement actions. In March 2025, OFAC removed decentralized mixer Tornado Cash from the list of Specially Designated Nationals after a court ruled that autonomous smart contracts cannot be treated as sanctioned assets.
National cryptocurrency activity reaches billions
Several sanctioned countries significantly expanded their crypto operations in 2025. North Korea-linked attackers reportedly stole more than $2 billion in cryptocurrencies that year, while continuing cyber operations and global IT worker programs to generate income.
Iran has also increased its use of blockchain networks in state-related financial activities. Addresses associated with networks associated with the Islamic Revolutionary Guard Corps accounted for more than half of the value received by Iranian organizations through the fourth quarter of 2025. These addresses moved more than $3 billion annually to support militia networks, oil-related transactions, and equipment procurement.
Meanwhile, Russia has adopted a blockchain-based payment system for international trade. Activity surrounding the ruble-backed A7A5 token suggests that it was used primarily during business hours on weekdays, indicating its use as a settlement layer for cross-border transactions.
Related: Iran’s multibillion-dollar cryptocurrency market faces new scrutiny amid conflict
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