An open source investigation analysing 164 documented cases reveals how cryptocurrency has been used to launder at least $350 billion globally, exposing sanctions evasion networks linked to Russia, North Korea and Iran.
Open-source intelligence and public blockchain data have helped uncover what researchers describe as a massive illicit financial ecosystem operating through cryptocurrency markets.
A new study estimates that at least $350 billion has been laundered globally through cryptocurrency between 2005 and 2025, though researchers warn the true figure is likely far higher.
The report, titled “Confronting the Illicit-Finance Hydra in Crypto Markets: Protecting Retail Investors and Disrupting Hostile Government Exploitation,” analysed 164 documented cryptocurrency money-laundering cases spanning two decades. The research relies on open source reporting, court documents and law enforcement disclosures.
According to Alexander Browder, Founder of the Global Cryptocurrency Laundering Database and author of the report, the estimate captures only a portion of the real activity.
“The database is based on open-sourced reporting of crypto laundering,” Browder said, “but many schemes have never seen the light of day.”
Browder added that the true scale of crypto-enabled money laundering is likely “many multiples” of the documented figure.
The study identifies Russia, North Korea and Iran as major state actors exploiting digital assets to bypass sanctions and generate revenue.
In Russia, the crypto exchange Garantex reportedly processed more than $100 billion in transactions, with 82 percent linked to sanctioned entities. North Korea has allegedly conducted 19 major crypto hacks worth about $4.1 billion, including a $1.5 billion Bybit breach in February 2025. Iran has also used cryptocurrency linked to oil sales, generating more than $100 million through networks tied to sanctioned individuals.
The report also highlights a significant enforcement gap: 79 percent of documented crypto laundering cases have not resulted in convictions, often due to cross-border jurisdiction challenges and obfuscation tools such as crypto mixers and privacy coins.
Researchers argue that stronger international coordination, stricter Know Your Customer (KYC) compliance and improved transaction monitoring are critical to disrupting the growing shadow economy in digital finance.
