The landscape of illicit cryptocurrency transactions has undergone a significant transformation, with stablecoins now taking the lead over Bitcoin. In 2025, data from Chainalysis highlighted that stablecoins constituted 84% of the $154 billion in illicit transaction volume, indicating a clear pivot toward more stable, dollar-pegged assets.
This shift marks the end of the era where Bitcoin was the primary currency used for unlawful activities. For years, Bitcoin was the go-to choice for cybercriminals, but since 2020, its dominance has steadily declined. The latest figures illustrate a stark contrast, revealing that while Bitcoin”s share of illicit transactions has diminished, stablecoins have ascended to capture the majority of the market.
The reasons behind this migration are multifaceted. Stablecoins offer significant advantages, such as stability in value compared to Bitcoin and Ethereum, and they facilitate seamless cross-border transactions. These characteristics have made them particularly appealing to sophisticated criminal networks, allowing for the execution of operations like “laundering-as-a-service.”
Moreover, nation-states including North Korea, Russia, and Iran have increasingly adopted stablecoins to circumvent Western sanctions. This phenomenon represents a modernization of financial crime, as these actors utilize stablecoins to maintain operations outside the purview of regulatory bodies.
The geopolitical implications are profound. The years from 2009 to 2019 can be characterized as the initial phase of rogue cybercriminals, while the years 2020 to 2024 were marked by the professionalization of these activities. Now, in 2025, we see a new phase where state actors engage in large-scale illicit operations. Countries like Russia have demonstrated how state-backed digital assets can be leveraged for sanctions evasion, with the launch of their ruble-backed A7A5 token.
Furthermore, illicit cryptocurrency activities are becoming increasingly intertwined with violent crime, including human trafficking and physical coercion for asset theft. While illicit transactions still represent less than 1% of the overall crypto economy, the qualitative changes within that small percentage raise alarms among regulators and national security agencies.
As we look ahead to 2026, the focus will likely shift toward disrupting this professionalized shadow economy. Law enforcement agencies and compliance teams must collaborate with crypto businesses to safeguard the integrity of the digital asset ecosystem, which now intersects directly with global security concerns.
