Sanctioned nations aggressively utilized cryptocurrency for evasion in 2025, driving a 700% increase in such activity. Russia, Iran, and North Korea collectively moved over $100 billion onchain, bypassing traditional financial systems. Chainalysis reports that sanctioned entities received at least $104 billion in crypto, an eightfold jump from the previous year. This surge pushed total illicit onchain volume to a record $154 billion. The report highlights the integration of cryptocurrency into national financial strategies by heavily sanctioned states.
Stablecoins dominated these illicit flows, accounting for approximately 84% of the volume. A ruble-pegged stablecoin, the A7A5 token, processed $93.3 billion in transactions, serving as a key settlement rail for sanctioned Russian businesses. An "A7A5 Instant Swapper" service reportedly converted these tokens to mainstream dollar-pegged stablecoins with minimal identity checks, facilitating access to the broader crypto economy.
Iran also escalated its crypto usage, with entities tied to the Islamic Revolutionary Guard Corps moving over $3 billion for proxy financing and trade. North Korea remained a leading cyber-theft actor, stealing more than $2 billion in cryptocurrency, including a record $1.5 billion from a hack of Bybit.