Synopsis: Russia leads illicit stablecoin use with $141B in 2025 flows (5-year high), driven by A7 network ($83B volume) evading sanctions. Links China, Iran, NKorea; guarantee platforms hit $17B, but illicit share stays ~1% of total $12T volume.
Blockchain analytics firm TRM Labs reveals a staggering $141 billion in illicit stablecoin flows in 2025 the highest level recorded in five years.
Dirty money has found a new home. In 2025, criminal networks, sanctioned governments, and money launderers moved billions using stablecoins. Russia sits at the center of it all. A new report from TRM Labs shows that illicit stablecoin activity hit a five-year high. The numbers are alarming and the story behind them is even more so.
Russia Becomes the World’s Illicit Stablecoin Capital
Russia is now the biggest hub for illicit stablecoin activity in the world. A network called A7 sits at the heart of Russian operations. This cross-border payment platform scaled rapidly after 2022. It handled at least $83 billion in direct transaction volume alone.
The ruble-pegged stablecoin A7A5 played a massive role. Around $72 billion of the total $141 billion in illicit flows linked directly to this token. Nearly all of its activity occurred inside sanctions-linked ecosystems. Sanctioned exchanges like Garantex and Grinex maintained close ties with the A7 network.
Russia did not work in isolation, however. Its networks connected with China, Iran, North Korea, and Venezuela. Together, these countries formed a web of illicit financial activity. Stablecoins became the thread connecting all of them.
Sanctions Evasion Dominates the Crime Landscape
Sanctions evasion drove the overwhelming majority of illicit stablecoin use. It accounted for 86% of all illicit crypto flows in 2025. Sanctioned actors used stablecoins to move money outside traditional financial systems. These networks operated like full parallel banking systems.
Iran-linked exchanges were a major part of the problem. Platforms like Zedcex and Zedxion acted as front companies. The U.S. Treasury’s OFAC designated both in January 2026. These exchanges had ties to Iran’s Islamic Revolutionary Guard Corps. Around 83% of their incoming funds came in USDT, a popular dollar-pegged stablecoin.
North Korea also participated in this illicit ecosystem. State-backed North Korean networks intersected with Russian and Iranian operations. They used stablecoins to execute high-value, coordinated financial movements. Venezuela, similarly, used stablecoins for cross-border sanctions evasion. China intersected with these networks through laundering services and guarantee platforms.
Also Read: Malaysia’s Central Bank Launches Stablecoin and Tokenization Pilot Programs
Guarantee Marketplaces Surge to $17 Billion
Criminal money-moving services called guarantee marketplaces saw explosive growth. Their quarterly volume peaked at over $17 billion in mid-2025. Platforms like Huione Guarantee dominated this space. Remarkably, 99% of all activity on these platforms occurred in stablecoins.
TRM Labs was direct about what this means. These platforms are laundering infrastructure, not investment venues. They processed payments for illicit goods, human trafficking, and organized crime. International escort networks and prostitution rings used stablecoins almost exclusively.
Chainalysis also reported a sharp rise in related activity. Crypto flows to suspected human trafficking networks grew 85% year over year. Stablecoins made these transactions fast, cheap, and stable in value. Enforcement actions late in 2025 began to slow some platforms down. Crackdowns on Huione and Haowang Guarantee caused notable declines in volume.
Illicit Activity Still Represents a Small Fraction of Total Volume
Despite the alarming numbers, context matters here. Total stablecoin transaction volume exceeded $1 trillion on multiple occasions in 2025. Annualized, this amounts to roughly $12 trillion in total stablecoin transactions. The $141 billion in illicit flows represents only about 1% of that total.
Furthermore, the share of illicit crypto activity actually fell slightly. It dropped from 1.3% in 2024 to 1.2% in 2025. TRM Labs noted that better attribution methods contributed to the higher raw numbers. Improved tracking tools help analysts identify more illicit flows than ever before.
By comparison, the United Nations estimates that 2% to 5% of global GDP gets laundered annually. That translates to between $800 billion and $2 trillion every year. Illicit stablecoin activity, therefore, remains a fraction of broader global money laundering.
Nevertheless, law enforcement is responding. Operations in Brazil, including one called Operation Lusocoin, disrupted key networks. European authorities also targeted illicit infrastructure in coordinated actions. These efforts show that governments are becoming better equipped to fight back.
The bottom line is clear. Stablecoins have matured into powerful financial tools. Criminal networks know it and they are using that power aggressively.
Written by Fazal Ul Vahab C H
