The US estimates the volume of sanctioned crypto transactions at $15 billion
Date: 2025-02-20 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
In 2024, the volume of cryptocurrency transactions associated with sanctioned entities amounted to $15.8 billion, which is 39% of all transactions that Chainalysis classifies as questionable. The company's new report emphasizes that despite international restrictions, states and companies continue to use crypto assets for payments and capital preservation.
Chainalysis data shows that the volume of transactions related to Iran has increased significantly over the past year. At the same time, the number of Russian-language crypto exchanges operating without verification (KYC) has reached a record high in the past four years. However, their overall turnover continues to decline. Many sanctioned platforms face blocking, which hinders their activities.
Chainalysis experts noted that these Russian-language platforms serve sanctioned banks, but the lack of registration data makes it difficult to determine their jurisdiction. Western regulators in 2024 stepped up measures to combat services that bypass sanctions restrictions. In particular, in September, Germany carried out Operation Final Exchange, during which it blocked 47 exchangers used for anonymous crypto transfers.
In addition, sanctions affected several platforms accused of assisting cybercriminals. For example, the Cryptex exchange fell under OFAC restrictions due to alleged ties to criminal groups.
According to Chainalysis, Russia remains one of the largest cryptocurrency markets. In 2024, Russian financial institutions began to develop mechanisms for international settlements in cryptocurrency after the adoption of a law allowing the use of digital assets in cross-border payments.
The total volume of sanctioned crypto transactions, including transactions with Iran and anonymous services that make it difficult to track funds, amounted to $15.8 billion in 2024. Among such tools, the crypto mixer Tornado Cash remains, which continues to process hundreds of millions of dollars monthly after OFAC sanctions and the arrests of its developers.
In a January review, Chainalysis reported that in 2024, the volume of cryptocurrencies transferred to addresses associated with illegal activities reached $40.9 billion, down from $46.1 billion in 2023. It is noted that cryptocurrency is increasingly being used by criminal groups to finance illegal operations such as drug trafficking, gambling, money laundering, and theft of intellectual property.
The report also analyzed the situation in Iran, where the volume of capital outflow through crypto platforms increased by 70%, reaching $4.18 billion. In the context of inflation and devaluation of the national currency, cryptocurrencies are becoming an alternative way to preserve capital. Researchers note that the withdrawal of funds from the country increases sharply during periods of escalating geopolitical tensions.
