The global cryptocurrency landscape is facing an unprecedented crisis of integrity. According to the latest report published on Thursday by blockchain analytics firm Chainalysis, 2025 marked a disturbing and historic record: cryptocurrency transactions linked to illicit activity increased by 162% over the previous year, reaching the astronomical figure of at least $154 billion.
Chainalysis Team
This spike is not only the result of individual hacker attacks, but reflects a systematic strategy adopted by sovereign states and organised criminal networks to circumvent international restrictions.
Iran and the Financing of Terror
At the centre of this illegal ecosystem lies the Iran. The Islamic Revolutionary Guards Corps (IRGC) has moved over $2 billion in cryptocurrencies to evade economic sanctions and finance cyber-crime operations. However, experts warn that this figure is probably underestimated, as it is based solely on the restrictive designations imposed by the US.
Tehran's use of digital assets is not limited to defending its economy. The report highlights how paramilitary groups and organisations labelled as terrorist - including Hezbollah, Hamas, and the Houthis - have intensified their use of digital assets to transfer and monetise funds, creating a parallel and hard-to-trace financial network that fuels instability in West Asia.
The Russia Case: The A7A5 Token and Large-Scale Evasion
If Iran is a key player, Russia was confirmed in 2025 as the main driver of illicit on-chain transaction volume. The decisive boost came from the introduction of the A7A5, a ruble-anchored token that Moscow used to circumvent global sanctions. Transactions linked to this new Russian stablecoin topped $93 billion, a volume that alone justifies the nearly sevenfold increase in crypto activity among sanctioned entities.
At the same time, North Korea continues to pose a persistent threat. Hackers linked to the Pyongyang regime experienced their most 'profitable' and sophisticated year yet, stealing some $2 billion. The DPRK's money laundering techniques have evolved, making it increasingly complex for the authorities to recover funds stolen from decentralised ecosystems.
The Rise of Chinese Money Laundering Networks
Another critical dimension that emerged in 2025 concerns the role of China. Chinese money laundering networks (CMLNs) have become a dominant force, turning on-chain crime into a full-fledged professional industry. Following operating models such as that of Huione Guarantee, these networks now offer 'Laundering-as-a-Service' services.
These organisations do not just clean money, but provide the necessary infrastructure for fraud, scams, terrorist financing and logistical support for the proceeds of the North Korean hackers. Their ability to diversify their operations has made the line between financial crime and state support increasingly blurred.
From Screen to Road: The Link with Physical Violence
Perhaps the most alarming aspect of the Chainalysis report concerns the growing correlation between digital assets and physical violence. It is no longer just about 'white collar' or cyber crimes. The data show a direct link between cryptocurrency flows and human trafficking operations, as well as attacks involving physical coercion to gain access to victims' wallets.
Physical attacks on Bitcoin holders increased by 33% in 2025, while violent robberies and kidnappings related to cryptocurrencies jumped by 169%. Most so-called 'spanner attacks' start with public exposure of the wallet. Attackers do not need to hack wallets; they just need to find the person. That is why privacy is paramount, stated Crypto Tea on X.
Physical attacks on bitcoin holders rose 33% in 2025
- Crypto Tea (@Cryptotea) January 8, 2026
and violent crypto robberies and kidnappings jumped 169%
most wrench attacks start with public wallet exposure
attackers don't need to hack wallets, they just need to find the person
This is why privacy matters. pic.twitter.com/vhEe8DPtJe
Despite these alarming figures, Chainalysis points out that illicit transactions still account for a small share of total crypto activity. However, the urgency to protect the security and integrity of the ecosystem has reached unprecedented levels. Without more stringent international cooperation and advanced monitoring tools, the risk is that the cryptocurrency market will become the ultimate haven for sanctioned regimes and global criminal organisations.
