A new 2026 Crypto Crime report by Chainalysis found global sanctions are a major contributor to illicit crypto addresses climbing to a staggering record amount in 2025.
People of sanctioned countries turned to blockchain throughout 2025 due to extreme economic situations and global sanctions.
As a matter of fact, at least $154 billion was channelled to illicit addresses, a 162% jump from the previous year.
A crazy 694% spike in funds flowing to sanctioned entities evading global sanctions
Chainalysis highlighted “unprecedented volumes” tied to nation-state antics on-chain, calling it the next big evolution in shady crypto activity.
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For instance, Russia hammered by global sanctions over its Ukraine invasion, rolled out the ruble-backed A7A5 token back in February 2025, and it cut through over $93.3 billion in transactions in under a year.
There are nearly 80,000 entities and individuals hit by global sanctions worldwide as of May 2025, per estimates. The US alone imposed many sanctions, forcing people straight into crypto’s arms.
On the other hand, stablecoins are now the go-to for illicit moves. They made up a massive 84% of illicit transaction volume, as they enable easy border-hopping, steady value, and handy uses.
However, even with this surge, illicit crypto stays tiny in the grand scheme. Chainalysis stresses that over 99% of transactions are clean, with bad stuff still under 1% of total volume. Traditional fiat remains the king for moving dirty money globally.
This Chainalysis report indicates how global sanctions are reshaping crypto threats. In fact, nation-states aren’t just dipping toes anymore; they’re diving in headfirst.
