Surge in Illicit Cryptocurrency Transactions
The volume of illicit cryptocurrency transactions surged dramatically to a staggering $158 billion in 2025, significantly bolstered by the emergence of a new stablecoin associated with Russia designed to circumvent international sanctions. This figure, reported by TRM Labs, marks a striking 145% increase from the previous year, highlighting a concerning trend in the crypto landscape.
A7A5: The New Stablecoin
Central to this spike in illicit activity is A7A5, a stablecoin tethered to the Russian ruble. Its design has made it particularly effective in enabling sanctioned economic exchanges, highlighting a shift in how countries under sanctions are adapting their financial strategies. In fact, a report from TRM noted that a remarkable 95% of the inflows directed toward sanctioned jurisdictions in 2025 originated from stablecoin transactions, with A7A5 accounting for over $72 billion of that total.
Historical Context and Expert Commentary
Historically, major dollar-pegged stablecoins like Tether’s USDT dominated the landscape of illicit crypto usage. However, as the sanctions landscape becomes tighter, A7A5 has emerged as the favored option for those trying to navigate these financial constraints. Ari Redbord, who formerly served in the U.S. Treasury and is now the global head of policy at TRM, commented on the evolution of these tools, stating:
“A7A5 exemplifies the adaptation of bad actors to build new pathways when existing ones become more difficult to traverse.”
Trends in Transaction Platforms
In a broader context, TRM’s findings reveal that while the use of stablecoin transactions in sanctioned entities fell by nearly 30% on exchanges that implemented Know Your Customer (KYC) regulations, there was an astonishing increase of over 200% in transactions on decentralized platforms that do not enforce such standards. This indicates a clear pivot toward less regulated venues for illicit activities.
Comparative Analysis of Stablecoin Usage
Moreover, A7A5’s rise stands in contrast to the use of stablecoins in other nations facing sanctions. For instance, Tether remains the primary choice in regions like Venezuela, while Iran’s illicit cryptocurrency dealings chiefly rely on Tether as well, predominantly conducted through Tron, the blockchain platform linked to Justin Sun and the Trump family.
Conclusion
Overall, the activity surrounding A7A5 not only underscores the ongoing challenges that sanctioned countries like Russia face with dollar-dependent financial systems but also illustrates the innovative ways these countries leverage cryptocurrency to maintain economic viability amid international restrictions.
