TRM Labs reports a 145% increase in illicit cryptocurrency transactions, totaling $158 billion in 2025, primarily driven by Russian and North Korean entities.
This surge has raised concerns about the growing role of cryptocurrency in global crime, prompting calls for stricter enforcement and regulation.
TRM Labs Reports 145% Increase in Illicit Transactions
The 2026 Crypto Crime Report by TRM Labs highlights a sharp rise in illicit cryptocurrency transactions in 2025. The total $158 billion illicit volume marks a 145% increase from 2024, despite accounting for only 1.2% of total on-chain activity.
TRM Labs’ analysis identifies nation-state actors like North Korea and Russia, and enforcement on stablecoins as key factors driving illicit activities. The 2025 increase underscores intensified sanctions enforcement and the emerging role of stablecoins in unlawful transactions. TRM Labs 2026 Crypto Crime Report
Stablecoins and Nation-States Drive Illicit Crypto Growth
The rise in illicit cryptocurrency activity has drawn attention to nation-state involvement, particularly Russia’s use of the ruble-pegged A7A5 stablecoin. Regulatory bodies are increasingly scrutinizing stablecoins like Tether for potential sanctions evasion. Investigation into Stablecoin Regulations
The surge suggests potential regulatory clampdowns and technological advancements in tracking illicit flows. TRM Labs estimates that the illicit share of total cryptocurrency volume declined from 2.4% in 2023 to 1.2% in 2025, illustrating increased enforcement efficacy.
Illicit Crypto Volumes Rebound to $158 Billion in 2025
Illicit crypto volumes have fluctuated since a peak in 2021 at $85.9 billion, followed by declines, until a rebound in 2025. This resurgence contrasts with Chainalysis reports estimating a less pronounced increase in a similar period.
Kanalcoin experts attribute the spike to escalating geopolitical tensions and advancements in blockchain tracking technologies. They anticipate further growth in enforcement capabilities, potentially curbing illicit activities in ensuing years.
Ari Redbord, Global Head of Policy, TRM Labs, stated: “We saw roughly four trillion dollars in stablecoin activity in 2025, which tells you how fast the lawful ecosystem is growing. Even with that growth, illicit activity still made up only about 1.2% of total volume. That said, that 1.2% is existential and pretty much all I think about — ransomware attacks on hospitals, seniors losing life savings to scams, and state actors like North Korea using crypto to fund weapons programs.”
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