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Crypto transactions related to criminal activity reached $158 billion in 2025. After a decline in since 2021, this is the first significant surge, with a 145% increase from 2024.
In the 2026 Crypto Crime Report by the blockchain intelligence firm TRM Labs, this increase illustrates a shift in on-chain crime trends due to state actors and professional financial networks.
According to TRM Labs' observations, two factors drove this increase in criminal transactions.
Sanctions evasion by Russia increased by more than 400% year-over-year. The main factors driving the surge were the A7 wallet ecosystem and the A7A5 stablecoin, which is pegged to the ruble.
TRM noted that A7A5 processed more than $72 billion in transactions in 2025, while wallets using the A7 network managed at least $38 billion. This group of A7 wallets serves transactions to various platforms, including Garantex.
Garantex is an exchange known for facilitating ransomware and other cybercrimes, which led to it being sanctioned by the U.S. Department of Treasury in August 2025.
Stablecoins have become the primary means for illegal money flows, especially for entities under embargo that need liquid, dollar-pegged instruments for cross-border transactions.
The rise in criminal transactions using cryptocurrency has coincided with the increasing use of stablecoins in 2025. Coingecko recorded a 48.9% surge in stablecoin market capitalization, reaching a new high of $311 billion in 2025.
Also Read: What is a Stablecoin? Definition, Types, How It Works, and Examples
The second factor driving the increase in illegal crypto-linked transactions is geopolitical pressure, which encouraged state actors to use crypto as core financial infrastructure rather than as a last resort. In other words, crypto is being institutionalized by various state actors subject to US sanctions.
For example, Venezuela uses crypto to support domestic and international payments and other state financial activities.
Meanwhile, in China, crypto volume increased from $123 million in 2020 to $103 billion in 2025, in line with the rise of escrow services and underground banking networks.
As crypto adoption expands, its use for illegal activities is also increasing. The actors are no longer just individuals or organizations, but players in the state level. Cryptocurrency is not just a transaction or investment tool, but a tool for building a shadow economy that runs parallel to the economy we see every day.
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