A report from Chainalysis has revealed that sanctioned jurisdictions and entities were responsible for nearly $16 billion in cryptocurrency transactions in 2024, fueled by increased activity on the mixing service Tornado Cash and a sharp rise in crypto usage in Iran, according to The Record, a news site by cybersecurity firm Recorded Future.
Despite US Treasury sanctions imposed in 2022, Tornado Cash remained active, processing approximately $100 million per month last year.
The service, which promotes its ability to obscure transaction trails, has been used for both privacy purposes and illicit activities. In 2024, about 25% of its inflows were linked to stolen funds, including $145 million allegedly taken by North Korean hackers, according to the report.
Meanwhile, Iranian cryptocurrency transactions surged 70% year-over-year, reaching $4.18 billion in 2024. The increase was driven by economic instability, currency devaluation, and geopolitical tensions, with citizens using crypto to bypass financial restrictions.
However, the number of exchanges dealing with Iranian entities has declined by 23% since 2022. Overall, global cryptocurrency transactions grew to $10.6 trillion in 2024, while illicit transactions dropped 24% to $45 billion, accounting for 0.4% of total volume, according to TRM Labs.
