Illicit crypto activity exploded in 2025, reaching a record $158 billion, driven largely by a Russia-linked stablecoin that quickly became the go-to vehicle for sanctions evasion, according to blockchain intelligence firm TRM Labs. The 2025 surge represents a 145% jump from 2024, and TRM pins much of the increase on a new ruble-pegged stablecoin called A7A5. Although historically dollar-pegged tokens such as Tether’s USDT have dominated illicit flows, A7A5 emerged as the dominant conduit last year—accounting for roughly 77% of illicit stablecoin activity, or more than $72 billion. TRM’s report also finds that stablecoins were the primary channel for moving value to sanctioned entities: about 95% of inflows to sanctioned parties and jurisdictions in 2025 occurred via stablecoins. The firm says this reflects a broader shift as sanctioned states find traditional dollar-linked rails harder to access and instead turn to bespoke crypto products to sustain sanctioned economic activity. “A7A5 shows how pressure creates specialization, and how bad actors will build new rails when old ones become harder to use,” said Ari Redbord, TRM’s global head of policy and a former U.S. Treasury official. “A7A5 was arguably the biggest crypto crime story of the year because it was not trying to be global. It was designed to move value where mainstream channels were being shut off.” The report also highlights differences in venue risk: in 2025, stablecoin flows to sanctioned entities fell by nearly 30% on exchanges with KYC protocols but surged more than 200% on decentralized services and non‑KYC platforms. Regional patterns persisted too—Tether remained heavily used in places like Venezuela, and Iran’s illicit activity was largely concentrated in USDT transactions on Tron. TRM’s findings underscore a growing arms race between sanctions enforcement and tailored crypto solutions: as enforcement tightens on traditional channels, new crypto-native rails can emerge quickly and dominate illicit flows. Read more AI-generated news on: undefined/news

#BTC #USDT