The blockchain and crypto ecosystem last year was marked by significant illicit activity, with sanctioned entities and jurisdictions playing a major role, according to Chainalysis’s latest report, entitled “2025 Crypto Crime Trends: Sanctions.”
The blockchain analytics firm reveals that $15.8 billion in crypto flowed to sanctioned actors—representing 39% of all illicit transactions—underscoring how digital assets are being leveraged amid geopolitical tensions.
From Russia’s strategic crypto moves to Iran’s capital flight and intensified Western crackdowns, the research report highlights key developments focused on crime, compliance, and global response.
In 2024, illicit cryptocurrency activity totaled $40.9 billion, a slight dip from 2023’s $46.1 billion, but the share tied to sanctions stood out.
Sanctioned entities and jurisdictions, such as Russia-based exchange Garantex and mixer Tornado Cash, received $15.8 billion—down from $19.8 billion in 2023 but still a hefty chunk of the illicit pie.
This reflects a broader trend: sanctioned actors, including those in Russia, Iran, and North Korea, are increasingly turning to crypto to bypass traditional financial restrictions.
Stablecoins, known for their dollar-like stability, dominated these flows, though issuers like Tether froze $371 million in illicit funds, showing the limitations of this strategy.
The report notes that not all of this volume is inherently criminal—much comes from everyday users in sanctioned regions using local platforms.
Yet, for compliance teams in jurisdictions like the U.S. and U.K., any exposure to these entities spells risk, driving demand for sharper blockchain analytics.
Russia emerged as a crypto adopter in 2024, with its exchanges and services raking in $12 billion—75% of all sanctions-related inflows.
Garantex alone handled $7.1 billion, working around U.S. sanctions due to Russia’s non-enforcement.
The country’s crypto stance isn’t just about evasion; it’s arguably more strategic.
Late 2024 saw Russia legalize crypto mining and allow digital assets for international trade, moves designed to counter Western sanctions and bolster its war economy.
High-profile collaborations, like unfreezing North Korean assets and exploring crypto-based arms deals, signal a pivot to blockchain as a viable financial solution.
Iran, facing a “maximum pressure” campaign from the U.S., saw its citizens move $2.9 billion in crypto—10% of its total on-chain activity—to escape economic restrictions.
With traditional dollar access curtailed, stablecoins became a go-to for preserving wealth amid 35% inflation and a plummeting rial.
The report highlights exchanges like Nobitex facilitating this shift, often routing funds through privacy tools like Tornado Cash, which saw inflows double to $1.9 billion in 2024.
Iran’s crypto surge also ties to its alliance with Russia, raising red flags for regulators tracking sanctions evasion and terrorist financing.
Western authorities responded to these developments.
The U.S. leaned heavily on Executive Order 14024, targeting Russian cybercrime and military procurement networks, sanctioning entities like Zservers for aiding ransomware groups like LockBit.
Operation Endgame, a U.S.-European effort, dismantled crypto-enabled cybercrime hubs, seizing millions in assets.
The U.K.’s Operation Destabilise nabbed 84 members of a Russian money-laundering ring, while Dutch police, with Chainalysis and Tether, froze €7 million.
These actions show a growing sophistication in tracing blockchain transactions to disrupt illicit networks.
For businesses, navigating this landscape is more challenging than ever.
The report emphasizes that sanctions compliance hinges on real-time blockchain analytics—tools like Chainalysis’s help firms screen for exposure to sanctioned wallets.
Yet, challenges persist: crypto’s borderless nature clashes with fragmented global rules, and privacy tools like mixers complicate tracking.
Despite this, the transparency of blockchain offers hope for a more transparent and accessible financial ecosystem.
Law enforcement’s ability to uncover complex schemes, as seen with Zservers’ $5.2 million in traced activity, proves crypto isn’t quite like the Wild West it once was.
In 2025, Chainalysis predicts sanctions will remain a crypto crime focal point.
As nations like Russia and Iran double down and Western allies push back, the tug-of-war over digital assets will only intensify—testing the limits of technology, policy, and global cooperation.