A sweeping new study on illicit finance in cryptocurrency markets paints a stark picture of how hostile governments and transnational crime syndicates are leveraging digital assets to evade sanctions, launder billions and fund cyber operations. The report, titled Confronting the Illicit-Finance Hydra in Crypto Markets: Protecting Retail Investors and Disrupting Hostile Government Exploitation, estimates that at least $350 billion has been laundered globally through cryptocurrency between 2005 and 2025 – a figure its author warns is likely only a fraction of the true total.

The research draws on 164 documented money-laundering cases spanning two decades. According to its findings, cryptocurrency has evolved from a niche financial experiment into a powerful parallel financial system – one that sanctioned individuals, terrorist groups and entire governments have increasingly weaponized to sidestep restrictions and move vast sums across borders.

In an interview with the Organized Crime and Corruption Reporting Project, Alexander Browder, founder of the Global Cryptocurrency Laundering Database and author of the report, cautioned that the $350 billion estimate is conservative. The database relies on open-source reporting, court documents and law enforcement announcements. But many illicit schemes, he noted, never surface publicly.

“The database is based on open-sourced reporting of crypto laundering,” Browder said, “but many schemes have never seen the light of day.” In his assessment, the real scale of crypto-enabled money laundering is likely “many multiples” of the documented figure.

The report singles out Russia, North Korea and Iran as particularly prolific in exploiting cryptocurrency markets for sanctions evasion and state revenue generation. These governments, it argues, have not merely tolerated crypto misuse but in some cases systematically incorporated it into their economic survival strategies under international pressure.

In Russia’s case, the report highlights the role of Garantex, a cryptocurrency exchange that allegedly processed more than $100 billion in........

© Blitz