Crypto Criminal Activity Reaches $158B in 2025 – Yet Illegal Usage Continues to Decline, According to TRM

A recent analysis from blockchain intelligence firm TRM Labs indicated that the nominal value of crypto-related crime peaked in 2025, even as the share of unlawful activity within the broader digital asset sector continued to decline overall.

The findings suggest that the amount of illegitimate cryptocurrencies surged to $158 billion in 2025, a rise of 145% compared to the previous year’s figure of $64.5 billion.

Source: TRM

Despite the significant increase in dollar terms, the illegal transactions accounted for merely 1.2% of the total on-chain volume, down from 1.3% in 2024 and significantly lower than the 2.4% peak in 2023.

These statistics align with the estimates released this month by Chainalysis, which projected crypto crime at $154 billion in 2025, constituting less than 1% of overall crypto activity.

Illicit Participants Capture Less Crypto Capital Despite Increased Volumes

To enhance risk assessment, TRM implemented a new metric that evaluates illicit activity in relation to deployable capital rather than just raw transaction volume.

Using this approach, the company found that unlawful actors captured 2.7% of the liquidity in the crypto space in 2025, down from 2.9% the previous year and 6.0% prior to that.

Source: TRM Labs

TRM indicated that the data implies that while certain illicit categories have grown in absolute numbers, criminal entities have claimed a smaller share of new capital flowing into the ecosystem.

In 2025, activity linked to sanctions contributed to illicit volume, primarily tied to transactions associated with Russia. TRM attributed this rise to the increased utilization of A7A5, a ruble-pegged stablecoin that recorded total transactions exceeding $72 billion throughout the year.

Russia’s ruble-backed stablecoin A7A5 has exceeded $100 billion in transactions in under a year.#RussiaStablecoin #A7A5 #RussiaSanctionshttps://t.co/QUp9twlECE

— Cryptonews.com (@cryptonews) January 23, 2026

At least $39 billion worth of transactions were linked to wallets belonging to the Russian sanctions-evasion network A7, indicating a significant level of coordination of activities related to state-supported financial infrastructure rather than extensive market usage.

Stablecoins served as the primary medium, and activities shifted towards less regulated and riskier avenues as enforcement intensified.

Geopolitical pressures have redefined cryptocurrency dynamics, with Venezuelans increasingly using stablecoins and peer-to-peer transactions for daily wages, remittances, and informal services due to economic instability.

In Iran, crypto trading activities have shown resilience against sanctions, with total transaction volumes declining during the June 2025 Iran-Israel conflict, yet values increased, suggesting larger transfers, with illegal operations reaching as high as $580 million.

Iran is allegedly offering ballistic missiles, drones, and warships to foreign governments in exchange for cryptocurrency, seeking payment methods that circumvent Western financial restrictions.#Iran #ArmsTrade https://t.co/kfVy8B4bgL

— Cryptonews.com (@cryptonews) January 2, 2026

Scams, Hacks, and AI Drive Crypto Crime in 2025

Another significant contributor to illicit volume was cryptocurrency theft, with $2.87 billion stolen across nearly 150 hacks and exploits in 2025.

While there was a slight reduction in incident numbers, the total losses surged as attackers increasingly targeted operational infrastructures instead of smart contracts.

Source: TRM Labs

In February, a single breach at Bybit, linked to North Korean actors, resulted in a loss of $1.46 billion, accounting for over half of the annual losses.

In total, five incidents represented approximately 70% of the stolen funds, highlighting the impact of several major attacks on yearly outcomes.

Fraud remained rampant, with scams resulting in an estimated $35 billion in losses, comparable to 2024 levels. Investment frauds, including so-called pig butchering schemes and Ponzi schemes, constituted nearly two-thirds of that total.

Stablecoins were the primary channel for fraudulent inflows, and TRM observed that criminal organizations increasingly utilized generative AI to enhance outreach and craft more persuasive scams, while speeding up money laundering to transfer funds within days of receipt.

Other illicit markets also saw expansion, with online drug trafficking surpassing $3.4 billion in crypto volume, largely driven by Russian-language darknet platforms.

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