Ongoing sanctions against nation-states last year pushed the total value of crypto received by illicit addresses to its highest in history, as blacklisted entities sought to evade sanctions at scale.
Throughout 2025, there were “unprecedented volumes associated with nation-states’ on-chain behavior,” blockchain analytics firm Chainalysis in their 2026 crypto crime report on Thursday.
Illicit at least $154 billion in 2025, a 162% increase year-over-year from 2024’s $59 billion, primarily driven by the value received by sanctioned entities.
At the same time, Russia, which is facing sanctions due to its invasion of Ukraine, launched in February 2025, and transacted over $93.3 billion in less than one year.
“In 2025, we tracked a notable rise in nation-state activity in crypto, marking the latest phase in the maturation of the illicit on-chain ecosystem,” the Chainalysis team said.
The Global Sanctions Inflation Index in May that there were just under 80,000 total sanctioned entities and persons globally. The Center for a New American Security that in 2024, the US alone issued “an unprecedented” number of sanctions, with 3,135 entities added to its Specially Designated Nationals and Blocked Persons List.
Illicit stablecoin usage mirrors legitimate activities
Just as over the past year, a similar trend has emerged in illicit circles, with illicit transactions, accounting for 84% of all volume, according to Chainalysis.
“This mirrors broader ecosystem trends where stablecoins occupy a sizable and growing percentage of all crypto activity due to their practical benefits: easy cross-border transferability, lower volatility, and broader utility,” the Chainalysis team said.
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Illicit crypto use remains below 1% of all tx volume
Chainalysis speculates that as it identifies more illicit addresses, the value received by illicit crypto addresses will likely increase as 2026 unfolds. However, it’s still just a drop in the ocean, with 99% of crypto transactions not related to illicit use.
“These illicit volumes are still dwarfed by the broader crypto economy, which largely consists of legitimate transaction volumes,” the Chainalysis team said, adding that “the illicit share of all attributed crypto transaction volume increased slightly from 2024 but remains below 1%.”
Fiat, meanwhile, remains the primary means for transferring illicit money.
The United Nations Office on Drugs and Crime has estimated in the past that the value of global criminal proceeds is equivalent to around 3.6% of global domestic product.
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