Sanctions Drive Majority of Illicit Flows
Blockchain analytics firm TRM Labs released a report this week showing something pretty striking. Illicit entities received around $141 billion through stablecoins in 2025. That’s the highest level they’ve seen in the last five years, which makes you pause for a moment.
But here’s the thing – TRM says this increase doesn’t necessarily mean crypto crime is growing overall. Instead, it shows what they call a “deeper reliance on stablecoins within specific activity types where they offer clear operational advantages.” I think that’s an important distinction. It’s not that crime is exploding, but that certain criminals are finding stablecoins particularly useful for their operations.
The Sanctions Connection
What really stands out in the data is how sanctions-related activity dominates the picture. It accounted for 86% of all illicit crypto flows in 2025. That’s an overwhelming majority. Of that $141 billion in stablecoin flows, about half – $72 billion – was linked specifically to the Russian ruble-pegged token A7A5.
TRM notes that A7A5’s activity is “almost entirely concentrated within sanctions-linked ecosystems.” Russian-linked networks, like one called A7, intersect with other state-linked ecosystems tied to China, Iran, North Korea, and Venezuela. The report suggests stablecoins have become “a connective infrastructure for sanctioned actors seeking to move value outside traditional financial controls.”
Different Criminal Activities, Different Stablecoin Usage
Not all criminal activities use stablecoins the same way. Scams, ransomware, and hacking operations tend to be more selective. They often prefer Bitcoin or other crypto assets initially, then switch to stablecoins later in the laundering process.
But some markets show what TRM calls “near-total stablecoin usage.” Illicit goods and services, human trafficking – these areas seem to prioritize payment certainty and liquidity over price appreciation. They want stable value, not speculative gains.
Volume on guarantee marketplaces like Huione surged to over $17 billion by late 2025, predominantly in stablecoins. TRM notes that “roughly 99% of this volume is denominated in stablecoins,” which reinforces the role these services play as laundering infrastructure rather than speculative venues.
Putting the Numbers in Context
Chainalysis reported earlier in February that crypto flows to suspected human trafficking networks increased 85% year over year in 2025. They noted that international escort services and prostitution networks operated almost exclusively using stablecoins.
TRM Labs reported that total stablecoin transaction volume exceeded $1 trillion on multiple occasions in 2025. Approximating this over a year yields around $12 trillion, meaning illicit use accounts for about 1% of the total.
When you compare this with United Nations estimates that the amount of illicit money laundered globally in one year is 2% to 5% of global GDP (around $800 billion to $2 trillion), the stablecoin numbers start to look different. They’re significant, but perhaps not as overwhelming as the raw $141 billion figure might suggest at first glance.
Still, the trend is clear. Certain types of illicit activity are finding stablecoins increasingly useful. The stability they offer makes them attractive for operations that need predictable value, especially when traditional financial channels are closed off due to sanctions.
