Sanctioned Entities in 2024: A Deep Dive into Crypto Transactions
In 2024, sanctioned entities managed to receive a staggering $15.8 billion in crypto, which accounted for a significant 39% of all illicit crypto transactions. This data was revealed in the 2025 Crypto Crime Report published by blockchain analytics firm Chainalysis.
Geopolitical Tensions and Financial Restrictions
The report shed light on how escalating geopolitical tensions and stringent financial restrictions pushed countries like Iran and Russia towards digital assets as a means to circumvent sanctions.
OFAC’s Crackdown on Financial Networks
The US Treasury’s Office of Foreign Assets Control (OFAC) intensified its efforts to dismantle financial networks that supported sanctioned states. This involved moving beyond targeting individuals to disrupting the core financial infrastructures that facilitated illicit transactions.
- OFAC issued a total of 13 designations involving crypto addresses, marking the second-highest count in the past seven years.
- This crackdown occurred despite an overall decrease in sanctions, indicating a shift towards more targeted actions.
The Rise of Crypto in Iran
Iran showcased a growing reliance on crypto, evident through the increased activity on centralized exchanges (CEXs) within the country.
Financial Turmoil and Crypto Adoption
The outflows from Iran reached a staggering $4.18 billion in 2024, marking a 70% increase from the previous year. This surge was driven by residents turning to digital assets amid the steep depreciation of the Iranian rial and high inflation rates.
- Many Iranians viewed crypto as a hedge against economic instability and a way to preserve wealth amidst government-imposed financial controls.
- The abrupt halt of withdrawals from exchanges by the Iranian government indicated efforts to curb financial outflows.
Russia’s Crypto Evolution
In Russia, lawmakers passed legislation that legalized crypto mining and allowed for international payments using digital assets as a response to Western sanctions.
Integration of Crypto into Financial Systems
Russia aimed to ease financial pressure by enabling global trade through cryptocurrencies, fostering stronger ties with BRICS nations to explore alternative financial systems that bypassed the US dollar.
- The Central Bank of Russia spearheaded efforts to integrate crypto into the country’s financial system under regulatory oversight, showcasing a significant shift in stance towards digital assets.
Crackdown on Russian-Linked Crypto Entities
Western agencies conducted significant operations against Russian-linked crypto entities in 2024, with multiple sanctions and seizures taking place throughout the year.
- OFAC sanctioned Russian UAV developer KB Vostok OOO for soliciting crypto donations and facilitating drone sales to Russian forces in Ukraine.
- The German Federal Criminal Police seized infrastructure from 47 no-KYC crypto exchanges involved in ransomware and darknet transactions as part of “Operation Final Exchange.”
- OFAC also targeted Russia-based crypto exchange Cryptex and its operator for laundering billions through fraudulent activities during “Operation Endgame.”
- The UK’s National Crime Agency dismantled a Russian money laundering network in “Operation Destabilise,” resulting in 84 arrests and the seizure of over €20 million in cash and crypto.
