Illegal cryptocurrency flows reached a record $158 billion in 2025, reversing a three-year trend of declining amounts from $86B in 2021 to $64B in 2024.
This sharp 145% increase is being reported by blockchain intelligence experts at TRM Labs, who noted that it comes despite the illicit activity share of the total on-chain volume actually falling slightly from 1.3% in 2024 to 1.2% in 2025.
Total illicit cryptocurrency flows
Source: TRM Labs
According to TRM Labs, the spike in volumes can be attributed to:
A surge in sanctions-linked crypto activity, overwhelmingly driven by Russia-associated networks such as A7 and the A7A5 stablecoin, following new sanctions designations and improved attribution of already-sanctioned actors.
Expanded use of cryptocurrency by nation-states and state-aligned actors, with Russia, Iran, and Venezuela using crypto as core financial infrastructure, alongside large-scale settlement activity through China-linked escrow and underground banking networks.
Improved attribution and faster intelligence sharing, including TRM’s own tools, which surfaced previously unattributed illicit flows and accelerated the identification of sanctions-related activity, major hacks, and blocklisted entities.
Flow volumes from sanctioned entities
Source: TRM Labs
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