Illicit Stablecoin Flows Reach Five‑Year Peak in 2025, Says TRM Labs
Stablecoin transfers to sanctioned and high‑risk actors totalled roughly $141 billion in 2025 – the highest level recorded since 2020.
Summary
- Blockchain analytics firm TRM Labs estimates that illicit entities moved about $141 billion via stablecoins in 2025, a five‑year high.
- The bulk of this activity is tied to sanctions‑evading networks, accounting for 86 % of all illicit crypto flows.
- Roughly $72 billion of the volume is linked to the Russian ruble‑pegged token A7A5, which is concentrated in sanction‑related ecosystems.
- Guarantee marketplaces, illicit goods platforms and human‑trafficking operations are also showing near‑total stablecoin usage, with some services processing more than $17 billion in stablecoins alone.
- Overall stablecoin transaction volume exceeded $1 trillion multiple times during the year, placing illicit activity at about 1 % of total stablecoin usage.
The Numbers Behind the Surge
TRM Labs’ latest quarterly report, released on Tuesday, shows that illicit actors received $141 billion in stablecoins during 2025. While the total stablecoin market continued to expand – crossing the $1 trillion mark in quarterly transaction volume on several occasions – the proportion of illicit flows remained relatively modest, hovering around 1 % of all stablecoin activity.
What distinguishes 2025 from previous years is the concentration of that illicit volume. Sanctions‑related schemes dominate the landscape, absorbing 86 % of all illicit crypto transfers. Within this segment, the A7A5 token, pegged to the Russian ruble, accounts for approximately half of the total illicit stablecoin inflows.
Why Stablecoins?
TRM Labs’ analysts note that stablecoins provide operational advantages for certain illicit use‑cases:
- Speed and Liquidity – Their 1:1 peg to fiat currencies enables rapid, large‑value transfers without the price volatility associated with traditional cryptocurrencies.
- Cross‑Border Reach – Stablecoins can be moved across jurisdictions with minimal friction, sidestepping many conventional banking controls.
- Compatibility with Existing Dark‑Web Infrastructure – Many illicit marketplaces already accept stablecoins as a default payment method.
These factors make stablecoins especially attractive for sanctions‑evasion networks and for services that demand guaranteed payment value, such as guarantee marketplaces and illicit‑goods platforms.
The Russian‑Linked ‘A7’ Ecosystem
The report highlights a cluster of Russian‑originated networks, collectively referred to as A7, that intersect with entities in China, Iran, North Korea, and Venezuela. The A7A5 token’s activity is “almost exclusively confined to sanctions‑linked ecosystems,” according to TRM Labs, underscoring stablecoins’ role as a connective infrastructure for state‑affiliated actors seeking to move value beyond traditional financial oversight.
Beyond Sanctions: Human Trafficking and Guarantee Marketplaces
- Human‑trafficking networks: A separate analysis by Chainalysis observed an 85 % year‑over‑year increase in crypto flows to suspected trafficking groups in 2025, with stablecoins serving as the primary vehicle for payments.
- Guarantee marketplaces: Platforms such as Huione recorded over $17 billion in stablecoin volume by the end of 2025, with ≈ 99 % of the activity denominated in stablecoins. This reflects a broader trend where illicit‑goods and service markets prioritize payment certainty over speculative gains.
Contextualising the Figures
When juxtaposed with the United Nations Office on Drugs and Crime (UNODC) estimate that global illicit money laundering ranges from 2 % to 5 % of global GDP (approximately $800 billion–$2 trillion annually), the $141 billion in illicit stablecoin inflows represents about 1 % of total stablecoin usage but a significant slice of the crypto‑enabled segment of illicit finance.
Key Takeaways
| Insight | Implication |
|---|---|
| Stablecoins remain the preferred medium for sanctions‑evasion | Regulators may need to tighten AML/KYC requirements around stablecoin issuers and custodians, especially for tokens with high geopolitical exposure. |
| A7A5 token is a focal point for Russian‑linked illicit finance | Targeted monitoring of A7A5 flows could yield actionable intelligence for enforcement agencies. |
| Guarantee marketplaces and human‑trafficking networks use stablecoins almost exclusively | Law‑enforcement efforts should prioritize tracing stablecoin pathways through these high‑volume services. |
| Overall illicit share of stablecoin volume stays low (~1 %) | While the absolute dollar amount is substantial, the majority of stablecoin activity continues to be legitimate, suggesting that blanket bans may be disproportionate. |
| Stablecoin transaction volumes exceed $1 trillion repeatedly | The sheer scale of legitimate usage underscores the importance of balanced regulation that curtails abuse without stifling innovation. |
Outlook
TRM Labs warns that while the absolute level of illicit stablecoin use has risen, it does not necessarily signal a broader surge in crypto‑enabled crime. Instead, the data points to a deepening reliance on stablecoins within specific, high‑value illicit sectors where their stability and ease of movement confer distinct advantages.
Policymakers and compliance officers are therefore likely to intensify scrutiny of stablecoin issuance, cross‑border transfers, and the onboarding processes of exchanges and custodians that facilitate these flows. As stablecoins embed further into the global financial fabric, the challenge will be to balance legitimate adoption with robust safeguards against misuse.
The analysis draws on the TRM Labs report released February 20 2025, Chainalysis data from early 2025, and publicly available UNODC estimates. All figures are approximate and subject to the inherent uncertainties of blockchain analytics.
Source: https://cointelegraph.com/news/illicit-stablecoin-activity-hits-five-year-high-at-141b-trm-labs?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
