Chainalysis Reports Increased Nation-State Activity In Crypto And Record $15B In Illicit Transactions
In Brief
In 2025, crypto crime reached record levels as nation-states and criminal networks used blockchain for theft, money laundering, and sanctions evasion, though overall illicit activity remains a small fraction of the broader crypto economy.
Chainalysis, a blockchain analytics firm, has published its “2026 Crypto Crime Report,” highlighting an increase in nation-state involvement in cryptocurrency during 2025, reflecting the growing sophistication of the on-chain illicit ecosystem.
Over recent years, criminal networks have developed professionalized blockchain infrastructure to facilitate transnational activities and launder funds. Nation-states are now engaging with these networks, either by using existing illicit services or creating their own infrastructure to bypass sanctions. This development raises heightened challenges for government agencies, as well as compliance and security teams, in addressing both consumer protection and national security risks.
Chainalysis reports that illicit cryptocurrency addresses received at least $154 billion in 2025, a 162% increase from the previous year, largely driven by a 694% rise in activity involving sanctioned entities.
Even without this surge, 2025 would have been a record year for cryptocurrency crime, with growth seen across most illicit categories. These figures represent a conservative estimate based on known illicit addresses.
Despite this increase, illicit activity remains a small fraction of the broader cryptocurrency economy, accounting for less than 1% of all transaction volume.
Stablecoins continue to dominate illicit transactions, representing 84% of such activity, reflecting their growing role across the cryptocurrency ecosystem due to ease of transfer, lower volatility, and practical utility.
North Korea Theft Hits New Highs, Russia’s A7A5 Enables Sanctions Evasion
In 2025, stolen funds continued to pose a risk to the cryptocurrency ecosystem, with DPRK-linked hackers responsible for approximately $2 billion in thefts. Large-scale breaches, including the February Bybit hack—the largest digital heist in cryptocurrency history at nearly $1.5 billion—accounted for the majority of these losses.
North Korean cyber actors demonstrated unprecedented sophistication in both intrusion and laundering methods. The year also saw record on-chain activity by nation-states. Russia’s efforts to use cryptocurrency for sanctions evasion advanced with the launch of its ruble-backed A7A5 token, which processed over $93.3 billion in under a year. Iran’s proxy networks continued to leverage cryptocurrency for money laundering, illicit oil sales, and procurement of arms and commodities, moving over $2 billion through wallets identified in sanctions designations, while Iran-aligned groups such as Hezbollah, Hamas, and the Houthis engaged in cryptocurrency activity at previously unseen scales despite military setbacks.
Chinese Money Laundering Networks And Evolving Cybercrime In Crypto Ecosystem
In 2025, Chinese money laundering networks emerged as a strong force in the illicit on-chain ecosystem, reflecting the growing professionalization and diversification of cryptocurrency crime. These networks provide specialized services, including laundering-as-a-service, and support a range of criminal activities from fraud and scams to proceeds from North Korean hacks, sanctions evasion, and terrorist financing.
Traditional cybercrime remains active, with ransomware operators, malware distributors, scammers, and illicit marketplaces relying on visible on-chain infrastructure providers, such as domain registrars and hosting services, to maintain operations. These providers have evolved into resilient platforms capable of withstanding takedowns and sanctions, amplifying the reach of both financially motivated criminals and state-aligned actors.
On-chain activity is increasingly linked to real-world violent crime, including human trafficking and coercion attacks that exploit cryptocurrency movements. Although illicit activity represents a small share of overall cryptocurrency usage, these developments highlight the importance of cooperation among law enforcement, regulators, and cryptocurrency businesses to safeguard the integrity and security of the ecosystem.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
More articles
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
