Sanctions evasion has traditionally been viewed as a game of financial shell companies and hidden bank accounts. While those opaque traditional structures remain the bedrock of illicit finance, the mechanism has expanded to the blockchain at scale.

Nation-states have upgraded their capabilities not just to launder on-chain, but also to execute cross-border trade. The data support this shift toward large-scale evasion. In 2025, illicit addresses received at least US$154 billion, a 162% increase year-over-year.

The primary driver of this surge was a 694% increase in value received by sanctioned entities, totaling a staggering $104 billion throughout the year.

At the same time, cryptocurrency’s role in nation-state…