In 2025, illicit stablecoin activity reached an unprecedented level of $141 billion, marking the highest point in the past five years, according to blockchain analytics firm TRM Labs. This surge underscores the increasing reliance on stablecoins in illicit operations where they provide significant operational advantages.
Stablecoins: A Key Player in Sanctions-Linked Networks
TRM Labs’ report reveals that stablecoins are particularly favored in sanctions-linked networks and large-scale money movement services. A staggering 86% of all illicit crypto flows in 2025 were related to sanctions-related activities. Within the $141 billion illicit stablecoin flows, nearly half, approximately $72 billion, was linked to the Russian ruble-pegged token A7A5. This token’s activity is primarily concentrated within sanctions-linked ecosystems.
Global Implications and Connections
Russian-linked networks, including entities like A7, are often intertwined with other state-linked ecosystems such as China, Iran, North Korea, and Venezuela. This illustrates how stablecoins have become a crucial infrastructure for sanctioned actors aiming to transfer value outside traditional financial systems.
Stablecoins in Ransomware and Scams
Although scams, ransomware, and hacking activities initially favor Bitcoin or other cryptocurrencies, they eventually convert to stablecoins during the laundering process. The report indicates that illicit goods, services, and human trafficking markets demonstrate near-total stablecoin usage, prioritizing payment certainty and liquidity.
By late 2025, guarantee marketplaces like Huione witnessed a volume surge to over $17 billion, predominantly in stablecoins. This highlights their role as laundering infrastructure rather than speculative platforms.
Chainalysis noted a significant 85% year-over-year increase in crypto flows to suspected human trafficking networks in 2025. These networks largely operated using stablecoins, further cementing their role in illicit activities.
Stablecoin Transactions: A Massive Scale
TRM Labs reported that total stablecoin activity exceeded $1 trillion in monthly transaction volume multiple times in 2025. When extrapolated annually, this amounts to around $12 trillion, with illicit use making up about 1% of the total transactions.
The global scale of illicit money laundering, as estimated by the United Nations, stands at 2% to 5% of the global GDP, or roughly $800 billion to $2 trillion annually, indicating the significant role stablecoins play in this ecosystem.
