Sanctioned states move $104B through crypto

TLDR

Analytics firms say sanctioned states and entities moved about $104 billion in crypto in 2025, mostly via stablecoins and state?linked networks, making sanctions evasion the largest slice of illicit crypto flows.

1. Chainalysis estimates illicit addresses received $154 billion in 2025, with roughly $104 billion tied to sanctioned entities concentrated in Russia, Iran, and North Korea.
2. Stablecoins, especially the ruble?pegged A7A5, dominate these flows, but illicit activity still accounts for under 1% of total crypto transaction volume.
3. Regulators are targeting these rails with new sanctions and enforcement, which could tighten compliance and liquidity on some exchanges and stablecoins.

Deep Dive

1. What The $104 Billion Figure Really Is

Chainalysis 2026 Crypto Crime Report estimates that illicit crypto addresses received at least $154 billion in 2025, and around $104 billion of that was linked to sanctioned entities and states such as Russia, Iran, and North Korea. Reports summarizing the study note that sanctions?related flows rose about 694700% year over year, making sanctions evasion the fastest?growing category of crypto crime. Articles from AMBCrypto and CoinDesk independently highlight the same headline number of about $104 billion to sanctioned entities and a record total of $154 billion in illicit volume.

2. How Sanctioned States Are Using Crypto

Chainalysis and TRM Labs both find that stablecoins account for roughly 80%+ of identified illicit crypto flows, reflecting their dollar linkage, liquidity, and ease of cross?border transfer. A central conduit is the ruble?pegged stablecoin A7A5, which reportedly processed about $93.3 billion of transactions in under a year, acting as a settlement rail for sanctioned Russian businesses. The same token is estimated to account for about $72 billion of illicit stablecoin flows, with activity concentrated during business hours, suggesting use in trade settlement rather than retail speculation.

In parallel, Iranian networks linked to the Islamic Revolutionary Guard Corps are reported to have moved more than $3 billion via crypto in 2025 for militia financing, oil sales, and dual?use procurement, while North Korea?aligned hackers stole over $2 billion in crypto that year.

3. Impact On Crypto Markets And Users

Despite record figures, multiple summaries of the Chainalysis report stress that illicit transactions still make up less than 1% of total crypto activity, as overall on?chain volumes have grown much faster. However, regulators in the US, EU, and UK are responding with coordinated sanctions on exchanges, specific tokens like A7A5, and clusters of addresses and services tied to sanctions evasion, as noted in coverage of global enforcement actions.

For mainstream users, this likely translates into stricter KYC/AML, more aggressive sanctions screening, and potentially reduced liquidity or access for high?risk stablecoins and lightly regulated venues. The flip side is that blockchain transparency gives law enforcement clear trails to follow, which is why these large flows are observable in the first place.

Conclusion

Sanctioned states using crypto to move around $104 billion in 2025 marks a clear shift toward blockchain?based sanctions evasion, centered on stablecoins and state?linked infrastructures. While this activity is large in absolute terms but small as a share of total crypto usage, it is big enough to shape regulation, enforcement, and which tokens and venues remain viable for global users. For anyone active in crypto, the biggest practical effects are likely to be stricter compliance demands and periodic shocks to liquidity where enforcement hits key illicit rails.