This article was first published on TurkishNY Radio.
Illicit stablecoin activity reached its highest level in five years in 2025, with roughly $141 billion in transfers linked to unlawful entities, based on findings published by TRM Labs.
The blockchain analytics firm emphasized that the increase does not necessarily indicate a broad expansion of crypto crime. Instead, it reflects a more concentrated reliance on stablecoins in certain categories of illicit finance particularly where price stability and liquidity offer practical advantages.
Stablecoins, designed to maintain a fixed value against fiat currencies, have become central to how sanctioned actors and organized networks move funds outside traditional banking channels.
Illicit Stablecoin Activity Fueled by Sanctions
According to TRM Labs, sanctions-related transactions accounted for 86% of all illicit crypto flows in 2025. A significant portion of illicit stablecoin activity, about $72 billion was tied to A7A5, a ruble-pegged token reportedly used within sanctions-linked ecosystems.
TRM Labs stated that A7A5’s activity is
“almost entirely concentrated within sanctions-linked ecosystems,”
underscoring how stablecoins are being used as settlement tools in restricted jurisdictions.
The report also identified cross-border connections among Russian-linked networks and entities associated with Iran, North Korea, Venezuela, and China.
These links illustrate how blockchain-based dollar substitutes can function as parallel payment rails when access to global banking infrastructure is limited.
Public blockchain data, accessible through platforms such as Etherscan, shows the scale at which stablecoins circulate globally.
Meanwhile, network documentation published by the Ethereum Foundation confirms that stablecoins processed trillions of dollars in transaction volume during 2025 alone.
Illicit Stablecoin Activity in Laundering Markets
Outside of sanctions evasion, illicit stablecoin activity was heavily concentrated in so-called guarantee marketplaces and money movement services.
TRM Labs reported that platforms such as Huione recorded more than $17 billion in volume by late 2025, with approximately 99% of that activity denominated in stablecoins. The firm noted that these platforms operate as laundering infrastructure rather than speculative trading venues.
In other categories, including illicit goods markets and human trafficking networks, stablecoins were used almost exclusively. By contrast, ransomware groups and hacking operations often receive payments in Bitcoin before converting funds into stablecoins during the laundering phase.
This distinction suggests that stablecoins are chosen less for speculation and more for operational efficiency, especially where settlement certainty matters.
Illicit Activity vs. Total Stablecoin Volume
Although $141 billion is a significant figure, it represents a small share of overall stablecoin usage.
TRM Labs reported that stablecoin transaction volumes exceeded $1 trillion multiple times during 2025. On an annualized basis, that implies approximately $12 trillion in total transfers. By that measure, illicit stablecoin activity accounts for roughly 1% of total stablecoin volume.
For comparison, the United Nations estimates that global money laundering across all financial systems equals 2% to 5% of global GDP annually between $800 billion and $2 trillion.
These comparisons matter for policymakers assessing proportional risk within digital asset markets.
What This Means for Regulation in 2026
The concentration of illicit stablecoin activity within sanctions-linked networks is likely to influence regulatory discussions in 2026. Governments are increasingly focused on oversight frameworks for stablecoin issuers, compliance standards, and cross-border monitoring.
At the same time, blockchain transparency continues to provide enforcement agencies with traceable transaction data. Unlike cash-based systems, most stablecoin transfers occur on public blockchains, leaving an auditable trail.
TRM Labs’ findings indicate not a widespread surge in crypto crime, but a shift in tools. Stablecoins are being selected where predictable value and liquidity are essential legitimate or otherwise.
As digital asset regulation evolves, the balance between financial innovation, compliance, and enforcement will remain central to the debate.
Summary
- A new report from TRM Labs shows that illicit stablecoin activity reached $141 billion in 2025, the highest level in five years, largely tied to sanctions-related financial networks.
- Most of this activity about 86% was connected to sanctions evasion, including heavy use of the ruble-pegged A7A5 token within restricted economic systems.
- Even so, illicit transactions still account for only about 1% of total global stablecoin volume.
Glossary of Key Terms
1. Stablecoin
A stablecoin is a type of cryptocurrency that tries to stay at a fixed value, usually around one U.S. dollar. It works like digital cash that doesn’t jump up and down in price like Bitcoin.
2. Illicit Stablecoin Activity
This means stablecoins being used for illegal purposes, such as moving money to avoid sanctions or hide criminal profits. It focuses on how digital dollars are misused, not regular everyday transactions.
3. Sanctions Evasion
Sanctions evasion happens when people or organizations try to get around financial restrictions placed by governments. It’s similar to finding a backdoor when the main entrance is locked.
4. Blockchain
A blockchain is a public digital record that keeps track of crypto transactions. You can think of it as an online notebook where every payment is written down and cannot easily be erased.
5. Blockchain Analytics Firm
These are companies that study blockchain data to spot suspicious activity. For example, TRM Labs analyzes crypto transactions to help identify potential financial misconduct.
6. Money Laundering
Money laundering is the act of hiding where illegally earned money came from. It usually involves moving funds through multiple accounts or services to make them appear legitimate.
7. Transaction Volume
Transaction volume refers to the total amount of money moving across a network over a certain period. In the case of stablecoins, that number can reach trillions of dollars each year.
8. Compliance
Compliance simply means following the rules. In crypto, this includes monitoring transactions, reporting suspicious behavior, and meeting legal standards set by regulators.
FAQs About Illicit stablecoin activity
1. What does illicit stablecoin activity actually mean?
It refers to unlawful transactions carried out using stablecoins. In 2025, TRM Labs recorded $141 billion in such activity, largely linked to sanctions evasion networks.
2. Does this mean stablecoins are mainly used for crime?
No. Stablecoins move trillions of dollars each year for legitimate payments and trading. Illicit stablecoin activity accounts for only about 1% of total volume.
3. Why do some networks prefer stablecoins over other cryptocurrencies?
Stablecoins hold a steady value and settle quickly across borders. That stability makes them useful for predictable payments in laundering operations and sanctions-linked transactions.
4. What changes could happen after this report?
Regulators may strengthen oversight and reporting standards. At the same time, blockchain analytics firms are expected to improve monitoring tools to support better compliance worldwide.
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