Illicit stablecoin activity hit 5-year high of $141B in 2025: TRM Labs

CoinTelegraph

by Martin Young

February 20, 2026

AI-Generated Deep Dive Summary

Illicit stablecoin activity reached a record high of $141 billion in 2025, marking the highest level observed over the past five years, according to a report by blockchain analytics firm TRM Labs. The surge in illegal activities involving stablecoins was concentrated in specific areas such as sanctions evasion networks, guarantee marketplaces, and large-scale money laundering schemes. While this increase does not indicate a broader expansion of crypto-enabled crime, it highlights a growing dependence on stablecoins for certain types of illicit operations where they provide significant advantages. Stablecoins have become a favored tool for entities engaged in activities aimed at circumventing sanctions and moving large sums of money securely. TRM Labs’ report revealed that these digital assets are particularly exploited by networks attempting to evade international sanctions, as well as by operators of marketplaces that facilitate illegal transactions. The rise in illicit stablecoin use underscores the challenges regulators face in tracking and curbing such activities, given the anonymity and cross-border nature of blockchain technology. The findings from TRM Labs emphasize the need for greater scrutiny of stablecoin flows to prevent their misuse. As stablecoins continue to play a pivotal role in modern financial systems, understanding their illicit applications becomes critical for maintaining trust in cryptocurrency markets. The report also highlights the importance of collaboration between regulators and blockchain analytics firms like TRM Labs to identify and combat these emerging threats effectively. For crypto enthusiasts and professionals, this data serves as a stark

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Originally published on CoinTelegraph on 2/20/2026