Iran, North Korea, Russia and other sanctioned nations handled more than $100 billion in crypto just in 2025, The Wall Street Journal (WSJ) reported Saturday (July 4), citing industry estimates.
The report added that these countries have grown more savvy in navigating the market, establishing their own digital tokens and crypto exchanges to help process transactions, according to crypto companies and Western authorities.
“Crypto has changed the sanctions evasion game significantly,” said Kaitlin Martin, a senior intelligence analyst at analytics firm Chainalysis.
That company estimates that crypto addresses linked to sanctioned countries received more than $100 billion last year, nearly eight times the amount received in 2024.
Western officials and crypto analytics companies say that Iran and Russia have both used digital assets to pay for drones and weapon parts, while Russia has used crypto to pay the crews that smuggle its oil around the world.
North Korea, accused of stealing crypto via hacks and other cyberattacks, has used the virtual currency to purchase fuel and military equipment, officials told WSJ.
Russia views sanctions against it as illegal under international law and has “deployed and developed alternative mechanisms that allow the economy to function normally,” Kremlin spokesman Dmitry Peskov told the news outlet.
North Korea recently called allegations that it engages in cybercrimes “absurd slander” and a part of Washington’s “hostile policy” toward its government, WSJ added.
The report goes on to say that Western officials are having a tough time keeping up as crypto becomes more popular for sanctions evasion. The U.S. has waived sanctions on Iranian oil as it works on a peace deal with Tehran, it could still reinstate those sanctions if no agreement can be reached to end the conflict.
As covered here earlier this year, sanctions have “changed the math” around crypto crime, as the volumes involved tend to greatly overshadow those found with traditional cybercrime.
That report cited findings from Eric Jardine, Chainalysis head of research. He pointed to the rise of a ruble-backed stablecoin known as the A7A5 token, which was later sanctioned by the European Union, as the most obvious example.
“Once that happened at scale,” said Jardine, “you were starting to see about $2 billion a week being processed via that token.”
“With nation-state actors,” he added, “the resources that support their efforts are significantly higher than you’d find with most run-of-the-mill illicit actors.”
