The Islamic Revolutionary Guard Corps (IRGC) of Iran has reportedly transferred more than $2 billion in cryptocurrency to evade international sanctions and bolster cybercriminal ventures. This figure, highlighted by Chainalysis, likely underrepresents the actual amount, as it reflects only sanctions designations from the United States.
The situation in Iran is indicative of a broader, alarming trend in the rise of illicit cryptocurrency transactions. The year 2025 saw an unprecedented escalation in crypto crime, with illicit activities soaring by 162% year-on-year, culminating in a staggering total of at least $154 billion in such transactions. Countries under heavy sanctions, notably Iran, Russia, and North Korea, have turned to digital currencies to navigate around financial restrictions.
Proxy groups associated with Iran, including notorious organizations like Hezbollah, Hamas, and the Houthis, have increasingly utilized digital assets for transferring and cashing out funds. This highlights a concerning trend where sanctioned jurisdictions are significantly expanding their engagement with cryptocurrencies.
Notably, Russia has emerged as a primary player in the illicit on-chain activity sphere. Following the introduction of its ruble-pegged A7A5 token last year, the volume of transactions linked to this stablecoin reached at least $93 billion, contributing to a nearly sevenfold increase in crypto transactions among entities facing sanctions.
Additionally, North Korea continues to pose a severe threat in the cyber realm. The previous year marked a particularly damaging period for North Korean hackers, with approximately $2 billion in stolen assets being attributed to their operations. The growing sophistication of their hacking and laundering techniques remains a significant risk to the integrity of the crypto ecosystem.
Furthermore, the emergence of Chinese money laundering networks (CMLNs) has introduced a new layer of complexity to the landscape of illicit cryptocurrency activities. These organized networks have evolved into comprehensive criminal operations, offering services such as laundering-as-a-service and aiding in the financing of terrorist activities.
Chainalysis emphasized that while illicit transactions still constitute a minor portion of total cryptocurrency activities, the correlation between digital assets and violent crime has become increasingly evident. There is a notable rise in connections between on-chain activity and incidents of human trafficking and other violent crimes, underscoring the urgent need to safeguard the security and integrity of the cryptocurrency ecosystem.
