Crypto Crime Hits Record Levels: Nation-States Dodge Sanctions
- Illicit activity involving cryptocurrency reached a record $154 billion in 2025, a 160% jump from the previous year, according to data from Chainalysis.
- The change wasn't just how much illicit activity occurred,but who was driving it.Eric Jardine, head of research at Chainalysis, explained that 2025 marked the point where nation-states began...
- "Sanction evasion by a nation state at scale can hit tremendously large volumes," Jardine said.
Crypto Crime Surged in 2025, But the Real Story Isn’t About Criminals
Illicit activity involving cryptocurrency reached a record $154 billion in 2025, a 160% jump from the previous year, according to data from Chainalysis. But experts say focusing solely on the increased volume misses a critical shift: the growing involvement of nation-states,particularly Russia,using crypto for sanctions evasion.
The change wasn’t just how much illicit activity occurred,but who was driving it.Eric Jardine, head of research at Chainalysis, explained that 2025 marked the point where nation-states began participating “in earnest” in the crypto ecosystem. This wasn’t marginal activity; it was large-scale financial maneuvering conducted openly.
“Sanction evasion by a nation state at scale can hit tremendously large volumes,” Jardine said. He emphasized that blockchain finance didn’t suddenly become more criminal, but rather more strategically important on a geopolitical level.
This marks a new baseline for crypto risk, Jardine stressed. The future of crypto compliance will be defined less by tracking shadowy criminals and more by understanding macroeconomic strategy.
From Peripheral Abuse to Systemic Use
For years, illicit crypto activity was largely driven by entrepreneurial, profit-motivated actors. Even significant operations like North Korea’s cyberattacks represented a relatively small portion of overall crypto flows.
Sanctions evasion dramatically alters this equation. When a country attempts to move large sums of money, the volumes far exceed those generated by traditional cybercrime. Jardine cited the A7A5 token, a ruble-backed stablecoin later sanctioned by the European Union, as a prime exmaple.
“Once that happened at scale,” he said, “you were starting to see about $2 billion a week being processed via that…