Russia, Iran and North Korea send illicit crypto volumes to record $154bn

Crypto adoption among sanctioned nation-states is booming.

Iran’s Islamic Revolutionary Guard Corps, Russia, and North Korea all helped push illicit onchain finance to stratospheric heights, reported the crypto analytics firm Chainalysis.

The firm added that industry-scale scam networks in Southeast Asia also contributed to a record $154 billion in total illicit transaction volume in 2025.

The depth of integration alongside wider adoption among legitimate users is also making enforcement difficult for authorities.

“This convergence can complicate enforcement,” analysts wrote on Thursday.

“The focus is no longer solely on isolating bad actors, but also on identifying when large-scale use of crypto crosses into sanctions violations or national security risk.”

Sanctioned entities

Pig-butchering scams, terrorist financing, escort services and child abuse material all contribute to the $154 billion figure, but it’s the use of crypto by sanctioned entities that dominates Chainalysis’ reporting.

The value received by sanctioned entities rose by more than 690% last year compared to 2024. There are four key entities behind that surge.

First, the IRGC and their proxy networks are turning to crypto to evade heavy sanctions levelled by the US and the European Union, which have designated the group a terrorist organisation.

Indeed, more than half of all value received by Iranian services has been linked to the IRGC, according to Chainalysis.

The organisation sent at least $3 billion to support regional militia, including Lebanese Hezbollah, Hamas, and the Houthis, in 2025

Those funds were also used to purchase dual-use goods with both commercial and civilian purposes, as well as to facilitate illicit oil sales.

Second, the hermit kingdom of North Korea saw its most fruitful year for crypto exploits in 2025. The DPRK stole roughly $2 billion through various hacks and cyberattacks, but its sprawling IT workforce also continues to generate revenue for the country.

The Pyongyang government has deployed thousands of people to try to secure employment at tech firms in Western countries.

Once hired, they attempt to siphon off funds internally or steal trade secrets.

Finally, Russia provides one of the most prominent examples of how crypto is being used to evade sanctions.

Following Russian President Vladimir Putin’s invasion of Ukraine in 2022, the country has faced one of the most severe sanctions programmes in the world. In an attempt to sidestep the blockade, a ruble-backed A7A5 stablecoin emerged to support cross-border trade.

Equally, Meer and Grinex, two exchanges, have also emerged to facilitate trade in this stablecoin and allow sanctioned Russian businesses access to markets.

The stablecoin has facilitated a whopping $93.3 billion in volume, according to Chainalysis.

Liam Kelly is DL News’ Berlin-based DeFi correspondent. Have a tip? Get in touch at [email protected].