Wallets linked to illicit cryptocurrency activity received an estimated $158 billion in incoming value during 2025, the highest level in five years and a sharp reversal from the previous year's $64.5 billion, according to a new report from blockchain intelligence firm TRM Labs.
What Happened: Russia-Linked Sanctions Drive Surge
The firm attributed the increase to intensified enforcement actions, expanded use of cryptocurrency by nation-state actors, and improved attribution methods that identified previously undetected illicit volumes.
Russia-linked activity accounted for the bulk of the surge.
The A7A5 token alone received an estimated $72 billion in incoming value, while the A7 wallet cluster processed $39 billion, with most flows connected to entities including Garantex, Grinex, and A7.
TRM Labs said the spike does not solely reflect sanctions evasion growth but rather new designations targeting large entities combined with better identification of addresses already linked to sanctioned actors. The A7 network emerged as a hub connecting Russia-aligned actors with counterparties across China, Southeast Asia, and Iran-linked networks.
The A7A5 token supports a ruble-pegged stablecoin aimed at reducing reliance on USD-based financial systems. High transaction volumes linked to the token represent state-aligned economic flows, not exclusively sanctions evasion.
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Why It Matters: Illicit Share Shrinks Despite Record Volumes
Despite the record absolute figures, illicit activity accounted for a smaller share of the overall crypto ecosystem.
Measured as a proportion of total attributed on-chain volume, illicit activity fell to 1.2% in 2025 from 1.3% in 2024, well below the 2.4% peak recorded in 2023. Illicit entities received 2.7% of incoming VASP flows in 2025, down from 2.9% in 2024 and 6.0% in 2023.
TRM Labs said these metrics indicate that while certain illicit categories expanded significantly, such actors absorbed a smaller proportion of new capital entering the crypto ecosystem.