Record $158 billion in illegal crypto flows in 2025, TRM Labs reports

Illegal cryptocurrency flows surged to a record $158 billion in 2025, reversing a three-year decline and marking a significant increase from $64 billion in 2024, as reported by Bleeping Computer.

Blockchain intelligence firm TRM Labs reported a 145% jump in illicit cryptocurrency volumes, despite the share of illegal activity in total on-chain volume falling slightly to 1.2%. This surge is attributed to increased sanctions-linked activity, particularly from Russia-associated networks, and expanded use of crypto by nation-states like Russia, Iran, and Venezuela for financial infrastructure. China-linked underground banking networks also played a role.

Hacks resulted in $2.87 billion in losses, with a $1.46 billion Bybit breach attributed to North Korea being the largest. Scam activity remained high at approximately $35 billion, dominated by investment scams potentially enhanced by AI tools. Ransomware inflows were elevated, though victims showed increased resistance to paying ransoms.

Source: Bleeping Computer