In 2025, about $141 billion in stablecoins reportedly ended up in the hands of illicit actors. Much of this activity was funneled through a few networks that favored stablecoins for their predictable value and quick transfers.
Sanctions Linked Networks Drive The Bulk Of FlowsThese networks are not isolated. Reports note overlaps with entities tied to China, Iran, North Korea, and Venezuela, which shows how stablecoins can act as bridges between different sanctioned systems.
The mechanics are simple: price stability matters when you need predictable settlement and low volatility risk. Stablecoins offer that.
Reports note these venues are almost totally stablecoin-denominated, which raises red flags about their role in moving funds tied to illicit trade. Chainalysis and others have also pointed to sharp increases in flows to networks connected to human trafficking and escort services, and those operations leaned heavily on stablecoins for payments.
In these cases, payment certainty and liquidity matter more to the buyers and sellers than the chance of gains.
Scams, ransomware, and thefts often start in Bitcoin or Ether and then shift into stablecoins later in the laundering chain. That pattern is common because attackers want an asset that holds value while they move it through fewer hands.
Meanwhile, the global stablecoin market has grown into a multi‑hundred‑billion‑dollar sector, with total market capitalization topping roughly $270 billion in early 2026.
Circle’s USD Coin (USDC) sits in second place with a market cap often above $70 billion, jointly holding over 90% of stablecoin capitalization when combined with USDT.
Smaller stablecoins like Ethena USDe, DAI, and PayPal USD make up a much smaller portion of the market but signal ongoing diversification among providers, the data tracker said.
Featured image from Unsplash, chart from TradingView
