Chainalysis: Illicit DeFi Inflows Rise 343% Year on Year

Illicit cryptocurrency addresses received at least $154 billion in 2025, a 162% year-over-year increase, according to Chainalysis. The firm characterizes the figure as a lower-bound estimate based on addresses identified to date and frames 2025 as a record year for crypto crime here.

Chainalysis also reports that stablecoins accounted for 84% of all illicit transaction volume in 2025, highlighting a shift in how illicit funds move across networks here.

Data Snapshot

How illicit flows shifted in 2025

Beyond the headline totals, Chainalysis notes a changing mix of endpoints and instruments. Stablecoins made up 84% of illicit volume in 2025, indicating their growing use in criminal activity by value, even as many stablecoin transactions remain legitimate source.

Chainalysis also highlights the emergence of Chinese-language money laundering networks (CMLNs), which together processed $16.1 billion in inflows in 2025. Since 2020, inflows to identified CMLNs grew 7,325 times faster than those to centralized exchanges and 1,810 times faster than those to decentralized finance (DeFi) source.

On the darknet market side, Chainalysis observed that vendors sent a significantly higher portion of funds to DeFi in 2024. Abacus Market, for example, received $43.3 million on-chain in 2024, more than doubling with growth of 183.2% YoY source.

Notably, a review of Chainalysis’ recent materials did not locate a Chainalysis source that uses the exact wording “Illicit DeFi inflows rise 343% year on year.” That phrasing is not present in the 2026 report introduction reviewed here.

Drivers indicated by Chainalysis materials

• Instrument choice: The concentration of illicit value in stablecoins at 84% suggests offenders may prefer assets that minimize price volatility and can move across chains and services quickly, consistent with Chainalysis’ observation of stablecoins’ dominant share source.
• Laundering endpoints: The rapid rise of CMLNs as specialized intermediaries, with $16.1 billion of inflows in 2025 and outsized growth versus both centralized exchanges and DeFi since 2020, points to evolving professionalization in laundering operations source.
• Routing choices by illicit sellers: Darknet market vendors directing a higher portion of funds to DeFi in 2024, as seen with Abacus Market’s $43.3 million on-chain and 183.2% YoY growth, indicates growing use of DeFi rails by some actors source.

What the numbers show and their limits

The $154 billion estimate reflects value received by addresses Chainalysis has identified as illicit and is described as a lower bound. It captures confirmed illicit entities but not all criminal activity occurring on-chain. The 162% YoY figure quantifies growth in known illicit inflows, not the total universe of crime.

The 84% stablecoin share indicates the dominant role of stablecoins in illicit transaction volume by value, but it does not imply that stablecoins are primarily used for crime. Likewise, the increase in DNM vendor usage of DeFi points to a behavioral shift among specific cohorts; it does not, on its own, quantify total illicit DeFi inflows in 2025.

Finally, the specific claim that “Illicit DeFi inflows rise 343% year on year” could not be sourced in Chainalysis’ published materials reviewed. Readers should treat that phrasing as unverified unless or until Chainalysis publishes a matching statistic source.

Next to watch: DeFi breakouts and CMLN velocity

Monitor upcoming Chainalysis updates for a dedicated breakout of illicit DeFi inflows and laundering endpoints in 2025–2026, alongside any revisions to lower-bound estimates. Key trackers include the stablecoin share of illicit volume, changes in DNM routing toward DeFi, and the relative inflow growth of identified CMLNs versus centralized exchanges and DeFi.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.