Illicit Stablecoin Activity Hits 5-Year High at $141B in 2025
Illicit actors received approximately $141 billion in stablecoins in 2025, marking the highest level in five years, according to a report released Tuesday by blockchain analytics firm TRM Labs. The firm said the rise does not indicate a broad increase in crypto-related crime but reflects a greater dependence on stablecoins within certain activities where they provide clear operational benefits.
TRM Labs reported that stablecoins were heavily used across sanctions-linked networks and large-scale value transfer services. Sanctions-related activity represented 86% of all illicit crypto flows in 2025. Of the $141 billion in stablecoin transfers, roughly half—about $72 billion—was associated with the Russian ruble-pegged token A7A5, whose transactions are largely confined to sanctions-connected ecosystems, the firm said.
Networks tied to Russia, including one known as A7, intersect with other state-linked ecosystems tied to China, Iran, North Korea, and Venezuela, TRM Labs added. The firm said this underscores how stablecoins have become connective infrastructure for sanctioned entities seeking to move funds outside traditional financial controls.
TRM Labs said sanctions evasion accounted for the majority of illicit stablecoin usage.
Guarantee marketplaces rely heavily on stablecoins
By comparison, scams, ransomware, and hacking activity make more selective use of stablecoins, often favoring Bitcoin (BTC) or other crypto assets initially, before switching to stablecoins later in the laundering process, according to the report.
TRM Labs also noted that categories such as illicit goods and services and human trafficking showed near-total reliance on stablecoins, indicating these markets prioritize payment certainty and liquidity over potential price gains.
Volume on guarantee marketplaces such as Huione climbed to more than $17 billion by late 2025, predominantly in stablecoins. TRM Labs said roughly 99% of this activity was denominated in stablecoins, reinforcing their role as laundering infrastructure rather than speculative trading venues.
Separately, Chainalysis reported in February that crypto flows to suspected human trafficking networks rose 85% year over year in 2025, adding that international escort services and prostitution networks operated almost entirely in stablecoins.
TRM Labs said total stablecoin activity surpassed $1 trillion in monthly transaction volume multiple times in 2025. Annualized, this approximates $12 trillion, suggesting illicit activity represents about 1% of the total.
For comparison, United Nations estimates indicate that illicit funds laundered globally each year amount to 2% to 5% of global GDP, or roughly $800 billion to $2 trillion.
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