A Chainalysis investigation revealed that Iran's Islamic Revolutionary Guard Corps (IRGC) had handled over $2 billion in cryptocurrency, aiming to circumvent sanctions and fund cybercrime activities. This figure accounts only for assets subject to U.S. sanctions and may be even higher.
The case of Iran symbolizes the current surge in illegal cryptocurrency transactions, influenced by sanctions from countries such as Russia and North Korea.
Iran and Russia leading the expansion of on-chain illegal transactions
In 2025, cryptocurrency crime reached an unprecedented level. According to Chainalysis data, illegal cryptocurrency transaction volumes increased by 162% compared to the previous year, reaching at least $154 billion.
Countries and regions subject to sanctions have significantly increased their reliance on cryptocurrencies as a means to circumvent financial restrictions.
In Iran's case, designated terrorist proxy groups and affiliated organizations such as Hezbollah, Hamas, and the Houthis are increasingly using digital assets as a means for transferring and cashing out funds.
It's not just Iran that has seen an acceleration in cryptocurrency crime.
According to Chainalysis, Russia accounted for the largest share of illicit on-chain activity. This trend has intensified since the introduction last year of the state-issued ruble-pegged A7A5 token. Transactions linked to Russia's new stablecoin have reached a total of $93 billion.
This transaction volume was the primary factor behind the approximately sevenfold increase in cryptocurrency activities by sanctioned organizations.
North Korean hackers have long posed cyber threats. Last year was the most damaging yet, with notable advancements in attack methods and money laundering techniques.
Illegally obtained assets continued to pose a serious risk to the cryptocurrency ecosystem in 2025. North Korean-linked hackers are believed to have stolen funds worth approximately $2 billion.
Meanwhile, illegal activities linked to China have added a new dimension to the overall picture.
Cryptocurrency crime has spread to violent incidents
In the report released by Chainalysis on Thursday, it was noted that China's money laundering networks (CMLNs) emerged as a dominant force in 2025.
These organized groups have accelerated the diversification and specialization of on-chain crime. Today, they provide specialized services such as money laundering as a service and the provision of criminal infrastructure.
Based on models like Fivewon Guarantee, these networks have evolved into comprehensive criminal organizations, supporting fraud, scams, funds acquired through North Korean hacking, sanctions evasion, and terrorist financing.
Beyond illegal activities using cryptocurrencies, the report also highlighted a growing correlation between digital assets and violent crime.
Blockchain analysis firms have pointed to an expanding connection between on-chain activities and crimes involving human trafficking and physical coercion.
Chainalysis explicitly stated that illegal transactions represent only a small fraction of the overall cryptocurrency ecosystem, while emphasizing that safeguarding the ecosystem's security and integrity has never been more critical.