Iran’s Revolutionary Guard moved billions in crypto to bypass sanctions
According to blockchain analytics firm Chainalysis, Iran’s Islamic Revolutionary Guard Corps transacted more than $2 billion in cryptocurrency last year. The funds were used to avoid international sanctions and support cybercriminal operations. That figure might actually be higher, since it only accounts for sanctions designations from the United States.
Iran’s situation reflects a broader trend—illicit cryptocurrency transactions have been growing exponentially. Other sanctioned countries like Russia and North Korea are driving this increase too. It’s becoming a pattern, really.
Sanctioned nations turn to crypto as financial workaround
Crypto crime reached unprecedented levels in 2025. Chainalysis data shows illicit cryptocurrency transactions increased by 162% compared to the previous year, totaling at least $154 billion. That’s a staggering jump.
Sanctioned jurisdictions have significantly expanded their reliance on digital assets to bypass financial restrictions. In Iran’s case, affiliated proxy groups and entities labeled as terrorist organizations—including Hezbollah, Hamas, and the Houthis—have increasingly turned to digital assets to transfer and cash out funds.
But Iran wasn’t alone in this surge. Russia accounted for the largest share of illicit on-chain activity. This trend intensified after the state introduced its ruble-pegged A7A5 token last year. Transactions linked to Russia’s new stablecoin reached at least $93 billion.
That volume alone emerged as the primary factor behind an almost sevenfold increase in crypto activity among sanctioned entities. It’s changing the landscape of how these nations operate financially.
North Korean hackers and Chinese networks complicate the picture
North Korean hackers have long been a persistent presence in the cyber threat environment. The past year marked their most damaging period to date, both in terms of the value stolen and the growing sophistication of their attack and laundering methods.
Hackers linked to the DPRK were responsible for approximately $2 billion in stolen funds. Meanwhile, China’s role in illicit activity introduced an unexpected dimension to the overall landscape.
Chinese money laundering networks emerged as a dominant force in 2025. These organized groups accelerated the diversification and professionalization of on-chain crime. They now offer specialized services, including laundering-as-a-service and supporting criminal infrastructure.
Building on models such as Huione Guarantee, these networks evolved into full-service criminal operations. They support fraud, scams, North Korean hacking proceeds, sanctions evasion, and terrorist financing.
Crypto crime extends into physical violence
Beyond crypto’s role in illicit financial activity, the report stressed the increased correlation between digital assets and violent crime. Physical attacks on bitcoin holders rose 33% in 2025. Violent crypto robberies and kidnappings jumped 169%.
Most wrench attacks start with public wallet exposure. Attackers don’t need to hack wallets—they just need to find the person. This is why privacy matters, perhaps more than we realized.
The blockchain analytics firm stressed the growing connections between on-chain activity and cases of human trafficking operations and attacks involving physical coercion.
Although Chainalysis clarified that illicit transactions still represent a small share of total crypto activity, the urgency of protecting the ecosystem’s security and integrity has reached unprecedented levels. The numbers tell a story that’s hard to ignore, I think.
