Stablecoin Crime Wave? $141B In Illicit Activity Reported This Year
In 2025, about $141 billion in stablecoins reportedly ended up within the palms of illicit actors. Much of this exercise was funneled by a number of networks that favored stablecoins for his or her predictable worth and fast transfers.
Much of that motion is tied to a small variety of networks that use stablecoins for his or her pace and worth stability. That doesn’t imply widespread legal use throughout all stablecoins. It factors to concentrated channels the place these tokens meet a selected want: transferring worth reliably exterior common banking rails.
Sanctions Linked Networks Drive The Bulk Of Flows
According To TRM Labs, sanctions-related flows made up roughly 86% of detected illicit crypto transfers final yr. Around $72 billion of the stablecoin whole traced again to a ruble-pegged token linked to Russian networks.
These networks aren’t remoted. Reports observe overlaps with entities tied to China, Iran, North Korea, and Venezuela, which reveals how stablecoins can act as bridges between totally different sanctioned techniques.
The mechanics are easy: worth stability issues if you want predictable settlement and low volatility threat. Stablecoins supply that.
Guarantee Marketplaces And Human Trafficking Rely On Stablecoins
Volume on sure marketplaces surged, principally in stablecoins. Some escrow and assure websites — which act like middlemen for high-value transfers — noticed tens of billions of {dollars} circulation by their techniques.
Reports observe these venues are nearly completely stablecoin-denominated, which raises crimson flags about their function in transferring funds tied to illicit commerce. Chainalysis and others have additionally pointed to sharp will increase in flows to networks linked to human trafficking and escort providers, and people operations leaned closely on stablecoins for funds.
In these instances, cost certainty and liquidity matter extra to the patrons and sellers than the possibility of positive aspects.
Different Types Of Crime Use Different Paths
Scams, ransomware, and thefts typically begin in Bitcoin or Ether after which shift into stablecoins later within the laundering chain. That sample is frequent as a result of attackers need an asset that holds worth whereas they transfer it by fewer palms.
Market Cap
Meanwhile, the worldwide stablecoin market has grown right into a multi‑hundred‑billion‑greenback sector, with whole market capitalization topping roughly $270 billion in early 2026.
According to information monitoring website Stablecoin.com, the combined value of all main stablecoins constantly sits above the mid‑lots of of billions mark, with fiat‑backed cash accounting for many of that whole.
Two issuers dominate the sector. Tether’s USDT leads by a large margin, with a market cap typically reported at round $180 billion or extra, and representing greater than two‑thirds of the whole stablecoin market.
Circle’s USD Coin (USDC) sits in second place with a market cap typically above $70 billion, collectively holding over 90% of stablecoin capitalization when mixed with USDT.
Smaller stablecoins like Ethena USDe, DAI, and PayPal USD make up a a lot smaller portion of the market however sign ongoing diversification amongst suppliers, the info tracker stated.
Featured picture from Unsplash, chart from TradingView
