According to Forbes, illicit crypto activity surged to a staggering $158 billion in 2025, reversing a prior declining trend. This jump is largely driven by sophisticated state-backed operations and global laundering networks, not just individual bad actors. Specifically, crypto money laundering alone ballooned to over $82 billion, an eightfold increase from 2020 levels, with Chinese-language laundering networks moving $16.1 billion despite a domestic crypto ban. A major concern is the fusion of crypto and AI, with impersonation scams skyrocketing 1400% year-over-year and proving 4.5 times more profitable. Crucially, stablecoins facilitated an estimated 84% of this illicit volume, including a ruble-pegged stablecoin processing over $72 billion primarily for sanctions evasion.
The Stablecoin Problem
Here’s the thing that should really grab policymakers’ attention. The very features that make stablecoins so useful for legitimate finance—speed, global reach, price stability—make them absolute magnets for illicit finance. When a single ruble-pegged stablecoin can funnel $72 billion, mostly to dodge sanctions, it’s a glaring systemic vulnerability. It’s not that stablecoins are inherently bad; they’re a foundational piece of the crypto economy. But the lack of robust, standardized auditing for these instruments is like leaving the vault door open. The article calls for “stablecoin-specific auditing and attestation standards” to be an absolute imperative for 2026. And you know what? They’re right. Without that transparency, the entire sector’s credibility is on the line.
Context Is Everything
Now, before we all panic, let’s add some crucial context. That $158 billion figure is huge, no doubt. But TRM Labs notes it still only represents about 1.2% of total crypto activity. Compared to the estimated $5.5 trillion in traditional global money laundering each year, as highlighted in the Napier AI / AML Index 2025-2026, the scale is different. This isn’t to excuse the crypto industry’s problems—getting that 1.2% as close to zero as possible is a non-negotiable goal for mainstream adoption. But it does mean the “crypto is only for criminals” narrative is, frankly, lazy and outdated. The real story is about sophistication and adaptation, not volume.
AI’s Double-Edged Sword
So, what’s driving this new wave of sophisticated crime? Look no further than artificial intelligence. The report details that AI-powered impersonation scams are devastatingly effective, which is a terrifying trend. But here’s the twist: AI might also be the best tool to fight it. The same Napier report suggests AI alone could address an estimated $183 billion of global money laundering. Think about it. Bad actors use AI to scale their operations 24/7. The only feasible defense is to use AI to monitor, detect, and respond at the same scale and speed. It’s an arms race, and the good guys are starting to deploy their own tech, with U.S. agencies already using it to claw back billions.
What Comes Next?
Basically, 2025 was a year where crypto’s growth pains became impossible to ignore. The spike in illicit activity is a direct call to action, not for knee-jerk bans, but for smarter regulation and better technology. The policy focus needs to shift to the boring but essential stuff: finalizing market structure rules and, as covered by CoinDesk, implementing those stablecoin auditing standards. The industry can’t celebrate institutional adoption while hand-waving away a $82 billion laundering problem. The tools to fix this—both regulatory and technological—are within reach. The question is whether the willpower is there to use them.
