Stablecoin Illicit Transactions Surpass $141 Billion, Highest Level in Five Years

▲ Cryptocurrency crime

Stablecoins, originally designed to avoid the volatility of the virtual asset market, are increasingly being transformed into key channels for sanctions evasion and large-scale money laundering. Last year, illicit fund flows utilizing stablecoins exceeded $141 billion, marking the highest level in the past five years.

According to a report released on the 18th (local time) by blockchain analytics firm TRM Labs, this figure reflects not so much an overall rise in crypto-related crime as a deepening reliance on stablecoins in specific illicit activities. In particular, within cross-border networks seeking to evade traditional financial sanctions, stablecoins have become core infrastructure enabling actors to bypass the controls of the conventional financial system.

Last year, 86% of illicit virtual asset flows were linked to sanctions-related activities. Of the $141 billion in illegal stablecoin transactions, approximately $72 billion—about half—was associated with a specific ruble-pegged token, A7A5. The report analyzed that Russia-linked networks are intertwined with sanctioned countries such as China, Iran, North Korea, and Venezuela, serving as conduits for value transfer.

The preferred type of cryptocurrency varied by crime category. In cases of fraud, ransomware, and hacking, Bitcoin (BTC) was primarily used in the early stages, but stablecoins were typically employed in the final stage of money laundering. In contrast, networks involved in illicit goods trading or human trafficking relied almost exclusively on stablecoins due to their lower price volatility and ample liquidity. Blockchain analytics firm Chainalysis also reported that cryptocurrency flows related to human trafficking surged 85% year-over-year, with most transactions conducted in stablecoins.

Despite the record-breaking scale of illicit transactions, their share of the overall stablecoin market remains relatively small. The total annual transaction volume of stablecoins last year was estimated at around $12 trillion, with illicit funds accounting for roughly 1%. Some analysts note this is comparatively low when measured against the United Nations’ estimate that global money laundering represents between 2% and 5% of worldwide GDP.

Experts warn that as regulatory scrutiny intensifies, criminals are avoiding centralized exchanges and retreating into closed networks that utilize individual wallets or stablecoins. As virtual asset infrastructure becomes more sophisticated, the methods employed by those seeking to exploit it are also growing increasingly complex, underscoring the urgent need for international cooperation and real-time responses through on-chain data analysis.

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