Iran’s $2 Billion Crypto Sanctions Escape
Iran’s Islamic Revolutionary Guard Corps transferred more than $2 billion through cryptocurrency channels last year, according to blockchain analytics firm Chainalysis. The funds were used to circumvent international sanctions and support cybercriminal operations. This figure could actually be higher, since it only takes into account U.S. sanctions designations.
What’s interesting is that this reflects a broader trend. Iran is not alone in turning to crypto to circumvent financial restrictions. The country’s situation shows an exponential increase in illicit cryptocurrency transactions, driven by similar pressures in countries like Russia and North Korea.
Sanctioned countries spur illicit growth
Crypto crime reached unprecedented levels in 2025. Data from Chainalysis shows that illicit cryptocurrency transactions jumped 162% from 2024, totaling at least $154 billion. Sanctioned jurisdictions have significantly increased their reliance on digital assets as a workaround.
In the case of Iran, affiliated proxy groups and entities labeled as terrorist organizations, including Hezbollah, Hamas, and the Houthis, are increasingly turning to digital assets to move and collect funds. But Iran is not the only driver of 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 the new Russian stablecoin have reached at least $93 billion. This volume alone emerged as the primary factor behind a seven-fold increase in crypto activity among sanctioned entities.
North Korean hackers and Chinese networks
North Korean hackers have a persistent presence in the cyber threat environment. The past year has been the most damaging period yet, both in terms of the value stolen and the increasing sophistication of their methods. Hackers linked to the DPRK are responsible for the theft of approximately $2 billion.
At the same time, China’s role has introduced an unexpected dimension. Chinese money laundering networks have become a dominant force in 2025. These organized groups have accelerated the diversification and professionalization of chain crime. They now offer specialist services including money laundering as a service and supporting criminal infrastructure.
Building on models like Huione Garantie, these networks have evolved into full-service criminal operations. They support fraud, scams, proceeds from North Korean hacking, sanctions evasion and terrorist financing.
From digital to physical violence
Beyond crypto’s role in illicit financial activities, the report highlights the increased correlation between digital assets and violent crimes. Physical attacks against Bitcoin holders increased by 33% in 2025. Violent thefts and kidnappings of cryptocurrencies jumped 169%.
Most key attacks start with exposing the public wallet. Attackers don’t need to hack wallets, they just need to find the person. This link between chain activity and instances of physical coercion has become more evident.
The blockchain analytics firm clarified that illicit transactions still represent a small portion of total crypto activity. But the urgency to protect the security and integrity of the ecosystem has reached unprecedented levels. Perhaps most concerning is the way these networks have professionalized, creating what looks like a parallel financial system with real-world consequences.
