Illicit cryptocurrency addresses received at least $154 billion in 2025, a 162% year-over-year increase, according to data from Chainalysis. Stablecoins accounted for 84% of all illicit transaction volume, and Chinese-language money laundering networks processed $16.1 billion in inflows alone. The numbers paint a picture of a problem that's scaling faster than the industry's ability to police it.
Stablecoins carry the load
The dominance of stablecoins in illegal transactions is hard to overstate. They're the preferred vehicle for moving value across borders quickly, and they don't have the price volatility of bitcoin or ether. That makes them attractive to bad actors who want to park funds without watching their balance swing. The 84% figure is a stark reminder that the stablecoin boom has a dark side.
It's not just about volume. Stablecoins are also the default for mixing and layering, according to the data. The sheer scale — $154 billion in a single year — suggests that the infrastructure for laundering through stablecoins is mature and widely used.
Chinese money laundering networks
Chinese-language money laundering networks, or CMLNs, are a growing problem. They processed $16.1 billion in inflows in 2025. Since 2020, inflows to identified CMLNs grew 7,325 times faster than those to centralized exchanges and 1,810 times faster than those to decentralized finance. That's not a rounding error. These networks are scaling at a pace that outstrips the rest of the ecosystem.
The growth is staggering. A 7,325-fold increase relative to exchanges means these networks are absorbing a disproportionate share of illicit funds. They're likely using a mix of over-the-counter brokers, peer-to-peer platforms, and cross-chain bridges to move money, though the report doesn't break down the mechanics.
Darknet markets lean into DeFi
Darknet markets are also shifting behavior. Abacus Market, a darknet marketplace, received $43.3 million on-chain in 2024, a 183.2% year-over-year increase. More telling, darknet market vendors sent a significantly higher portion of their funds to DeFi protocols in 2024. That suggests they're looking for ways to launder proceeds through decentralized exchanges and lending platforms, which can be harder to trace.
The move toward DeFi isn't surprising. Decentralized platforms often lack the know-your-customer checks that centralized exchanges have tightened. For vendors, that's an opportunity. For regulators, it's a headache.
One claim that doesn't check out
Not every number floating around is solid. A specific claim that illicit DeFi inflows rose 343% year on year could not be sourced in Chainalysis' published materials. It's unverified. That doesn't mean it's false, but it's worth treating with caution. The data we do have is already alarming enough.
The next question is how regulators respond. Stablecoin issuers and exchanges are under pressure to tighten know-your-customer checks, and DeFi platforms are facing scrutiny. But the numbers suggest the problem is growing faster than the response.
