"Illegal activity in the crypto sector is nothing new but, in recent months, it is nation-states that account for a growing share of it. In the last year, there has been a 694% increase in crypto received by sanctioned entities, including from Russia and Iran, according to a new section of Chainalysis' Crypto Crime Report. The report details the evolution of crypto crime over time."
"The report comes out at a time when rumors swirl about the crypto holdings of another sanctions-prone country-Venezuela. While the South American nation is not named in the report, it has a long history with crypto. Fierman says that citizens have been using it as a way to counteract their currency's hyperinflation. As for Russia, the country has made several moves on-chain in the last couple of years."
"Then, in February 2025, the country launched its ruble-backed A7A5 token, which saw roughly $93 billion in transactions in less than a year. Iran made similar gains in using crypto. The country's Islamic Revolutionary Guard Corps and its proxy network facilitated more than $2 billion in money laundering, illicit oil sales, and the procurement of arms on-chain. Terrorist organizations aligned with Iran, including Lebanese Hezbollah, Hamas, and the Houthis are using crypto at unprecedented scales, according to the report."
Illegal cryptocurrency activity has shifted from individual actors to nation-states that now move hundreds of millions to billions of dollars on-chain. Sanctioned entities received 694% more crypto in the last year, including flows linked to Russia and Iran. Russia enacted 2024 legislation permitting crypto for international payments and issued a ruble-backed A7A5 token that processed roughly $93 billion in transactions within a year. Iran's Islamic Revolutionary Guard Corps and proxy network facilitated over $2 billion in money laundering, illicit oil sales, and arms procurement on-chain. Terrorist groups aligned with Iran are using cryptocurrency at unprecedented scales. Venezuelan citizens use crypto to hedge hyperinflation.
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