The world of cryptocurrency has reached a new milestone, but not for the reasons crypto enthusiasts might celebrate. According to a 2025 report by blockchain analytics firm Chainalysis, illicit cryptocurrency transactions hit an all-time high of $154 billion—a staggering 162% increase compared to the previous year. This surge has raised concerns among global regulators and law enforcement agencies, especially with stablecoins driving 84% of these transactions.
The Evolution of Crypto Crime: Nation-States Take the Lead
Chainalysis identifies 2025 as the third wave in the evolution of crypto crime. The first wave (2009-2019) saw individual rogue actors dominate the space. The second wave (2020-2024) brought professional criminal organizations building on-chain infrastructure for organized crime. Now, the third wave highlights nation-states adopting cryptocurrencies to sidestep international sanctions. These entities are tapping into infrastructure originally designed for cybercriminals, elevating crypto-related risks on both financial and national security fronts.
For instance, Russia introduced its A7A5 stablecoin to facilitate transactions while circumventing sanctions. The stablecoin accounted for over $93 billion in exchanges within its first year. Similarly, North Korean hackers made headlines, stealing $2 billion in 2025 alone, with a record-breaking $1.5 billion Bybit exploit. Iran’s proxy networks also leveraged cryptocurrency for over $2 billion worth of hidden transactions, including oil sales and weapons procurement.
The Rise of Stablecoins in Illicit Activities
The report reveals a dramatic shift in the assets used in illicit transactions. In 2020, Bitcoin comprised 70% of such activities, while stablecoins trailed with just 15%. By 2025, stablecoins now account for 84% of all illicit funds, with Bitcoin’s share shrinking to only 7%. Stablecoins offer practical features, including lower volatility, faster cross-border transfers, and improved liquidity, making them a preferred choice for criminals.
This shift mirrors mainstream cryptocurrency trends, where stablecoins are gaining prominence in legitimate transactions as well. They are often used for decentralized finance (DeFi) platforms, remittances, and trading.
The Role of Chinese Laundering Networks
Another alarming trend in 2025 is the emergence of Chinese laundering networks, offering full-service packages for illicit actors. These services include everything from basic fraud support to laundering hacked funds and facilitating terrorist financing. These operations have established themselves as critical players in the ecosystem, often aiding organized groups like North Korea’s Lazarus Group.
On top of that, human trafficking rings and violent crimes, such as coercion attacks tied to cryptocurrency fluctuations, are increasingly being linked to on-chain activities. This rising trend underlines the need for stricter regulations and enhanced security measures.
What Can Be Done?
Despite the jaw-dropping figures, Chainalysis remarks that illicit transactions still represent less than 1% of all crypto activity. However, the growing number of nation-state actors and the sheer volume of these transactions highlight the severe implications for the global financial system. To address these concerns, a multi-pronged approach involving law enforcement, legislators, and cryptocurrency businesses is essential.
One notable tool for protecting individual crypto investments while ensuring regulatory compliance is Trezor Model T, a popular hardware wallet offering unparalleled security for managing digital assets. Using such tools can help users safeguard their funds in a rapidly evolving crypto ecosystem.
The Future of Cryptocurrency Security
The 2025 crypto landscape underscores a critical pivot in its narrative—the stakes have never been higher. As cryptocurrencies continue to revolutionize the financial world, maintaining its integrity through robust security measures and international collaboration will be essential. For everyday investors and enthusiasts, staying informed and adopting secure practices will remain vital in navigating this dynamic space.
