Crypto Activity by Sanctioned States Expands Across Global Networks

• Illicit crypto inflows hit $154B in 2025 as sanctioned entities drive most activity.
• Regulators expand coordinated sanctions targeting crypto networks and infrastructure.
• Iran, Russia, and North Korea scale crypto use for trade, funding, and cyber activity.

Cryptocurrency is increasingly being used by sanctioned states to facilitate cross-border trade, finance proxy networks, and move funds outside traditional financial systems, according to recent data examining blockchain activity linked to sanctioned entities.

In 2025 alone, illicit cryptocurrency addresses received around $154 billion, marking a 162% increase from the previous year. Much of this growth was attributed to sanctioned entities, which accounted for $104 billion in value received, a 694% year-over-year surge.

Sanctions Enforcement Expands Across Crypto Networks

Regulators in the United States, Europe, and the United Kingdom increased joint enforcement actions in 2025 targeting cryptocurrency activity linked to sanctions evasion and illicit finance.

Agencies, including the U.S. Office of Foreign Assets Control (OFAC), the European Union, and the U.K.’s Office of Financial Sanctions Implementation, expanded sanctions designations against crypto infrastructure tied to ransomware groups, state-linked networks, and services used to circumvent restrictions.

The European Union also introduced measures targeting Russian cryptocurrency providers and the ruble-backed A7A5 stablecoin. The token processed about $93.3 billion in transactions within 10 months, illustrating how digital assets are being used to settle cross-border transactions outside conventional banking channels.

Legal debates surrounding decentralized technology also impacted enforcement actions. In March 2025, OFAC removed the decentralized mixer Tornado Cash from its Specially Designated Nationals list after a court ruling determined that autonomous smart contracts could not be treated as sanctionable property.

Nation-State Crypto Activity Reaches Billions

Several sanctioned states significantly expanded their cryptocurrency operations in 2025. North Korean-linked actors reportedly stole more than $2 billion in cryptocurrency during the year while continuing cyber operations and global IT worker schemes to generate revenue.

Iran also increased its use of blockchain networks in state-linked financial activities. Addresses associated with networks tied to the Islamic Revolutionary Guard Corps accounted for more than half of the value received by Iranian entities by the fourth quarter of 2025. Those addresses moved over $3 billion during the year to support militia networks, oil-related transactions, and procurement of equipment.

Meanwhile, Russia adopted blockchain-based settlement systems for international trade. Activity surrounding the ruble-backed A7A5 token suggests it was used primarily during weekday business hours, indicating use as a settlement layer for cross-border transactions. 

Related: Iran’s Multi-Billion Dollar Cryptocurrency Market Faces New Scrutiny Amid Conflict