Criminal activity involving cryptocurrencies surged sharply in 2025, reversing several years of steady decline, according to a new report by blockchain intelligence firm TRM Labs. The report estimates that illicit crypto transactions reached US$158 billion, marking a significant jump driven largely by organised crime networks, state-linked actors, and the growing professionalisation of crypto-enabled financial crime.
TRM Labs said the increase reflects a shift in how criminals use digital assets rather than a collapse in enforcement. While scams, ransomware, sanctions evasion and illicit marketplaces remain dominant categories, the report highlights a rise in large-scale, structured operations using crypto as a core financial rail rather than a fringe tool. Criminal networks are increasingly embedding cryptocurrencies into broader money-laundering ecosystems that also involve shell companies, trade-based laundering and offshore financial centres.
One of the most significant drivers of the surge was the expansion of state-sponsored and geopolitically motivated activity, including sanctions evasion and illicit procurement networks. Actors linked to sanctioned jurisdictions made heavier use of crypto to move funds across borders, pay intermediaries and acquire restricted goods. This activity often involved stablecoins and complex transaction chains designed to obscure the origin and destination of funds.
The report also points to a rebound in ransomware-related payments, which had declined in earlier years due to improved cyber defences, insurance restrictions and law enforcement action. In 2025, attackers adapted by targeting smaller organisations, demanding lower but more frequently paid ransoms, and using faster laundering techniques to move funds before assets could be frozen.
Despite the sharp rise in criminal volumes, TRM stressed that illicit transactions still account for a relatively small share of overall crypto activity, which has expanded rapidly with broader institutional and retail adoption. However, the absolute increase underscores the growing challenge regulators and exchanges face as criminal sophistication rises alongside legitimate use.
Law enforcement agencies and blockchain analytics firms have recorded major successes in recent years, including asset seizures, arrests and the dismantling of major darknet marketplaces. Yet TRM warned that enforcement alone is insufficient. Criminal groups are exploiting regulatory gaps between jurisdictions, decentralised finance platforms with limited oversight, and peer-to-peer channels that fall outside traditional compliance systems.
The report calls for stronger international cooperation, faster intelligence sharing between the public and private sectors, and more harmonised global crypto regulations. Without these measures, TRM cautioned that criminal use of digital assets is likely to remain elevated even as the crypto ecosystem continues to mature.
Global crypto crime hits record US$154 Billion in 2025 as Nation-State activity surges
