Illicit cryptocurrency activity surged to a record $154 billion in 2025, driven largely by a sharp increase in sanctions evasion by nation-states using blockchain networks, according to a new report from blockchain analytics firm Chainalysis.

The report finds that funds flowing to sanctioned entities jumped 694% year over year, making sanctions evasion the fastest-growing category of crypto crime.

But even excluding sanctioned activity, 2025 would still mark a record year for illicit on-chain transactions as criminal activity rose across most categories, Chainalysis said.

Despite the surge in illicit…