A Chainalysis report reveals a significant increase in state-sponsored cryptocurrency activity in 2025. Illegal organizations now operate massive on-chain infrastructure, facilitating transnational criminal networks' acquisition of goods and services and laundering of their illicit cryptocurrency proceeds. Data shows that illicit cryptocurrency transactions reached at least $154 billion in 2025, a 162% increase from the previous year, primarily driven by a 694% surge in payments received by sanctioned entities. Even if sanctioned entities had received payments roughly the same as the previous year, 2025 would still have been a record year for cryptocurrency crime, as activity increased across most illicit crime categories. Furthermore, stablecoins dominate the illicit transaction landscape, currently accounting for 84% of all illicit transactions.