Chainalysis: Illegal cryptocurrency flows hit record highs, sanctioned entity transactions explode by 694%

The Chainalysis report at the beginning of 2025 reveals a concerning trend in the cryptocurrency space. Data indicates record-breaking values of operations related to financial crime – illegal cryptocurrency transactions exceeded the $154 billion threshold last year. This increase was rapid, reaching 162% compared to the previous year.

Flows to sanctioned entities are accelerating

The most alarming is the sharp rise in funds directed to sanctioned entities. Flows in this category increased by 694%, representing the fastest growth among all categories examined by Chainalysis. This evolving threat requires particular attention from regulators worldwide.

On-chain infrastructure supports international crime

Illegal criminal networks have expanded their operational capacity by utilizing advanced on-chain infrastructure to facilitate access to goods and services. At the same time, money laundering activities are becoming increasingly sophisticated, using blockchain technology to hide transaction traces. Criminal organizations are successfully employing these tools to handle transnational operations.

Stablecoins dominate the illegal operation space

Analyzing the structure of illegal flows, Chainalysis discovered the deep-rooted presence of stablecoins in the criminal ecosystem. Coins in this category account for as much as 84% of the total volume of all illegal transactions. Their stable value and fast transfer speed make them the preferred tool for actors involved in criminal activities.

Cryptocurrency crime on multiple fronts

Although flows to sanctioned entities increased by 694%, they are not the only reason for the record results. Activity in most categories of cryptocurrency-related crimes increased last year. Even if flows to sanctioned entities had stabilized at the previous year’s level, 2025 would still be recorded as another record-breaking year for cryptocurrency crime.

The Chainalysis report signals the need to intensify monitoring and regulation efforts in the cryptocurrency sector.