Archive · 8 Dec 2025
Cryptocurrency Facilitates Money Laundering and Sanction Evasion
Criminals are using a type of digital money called stablecoins to launder money and avoid sanctions.
Stablecoins are tied to the U.S. dollar and can be moved quickly and easily across borders.
This makes it hard for authorities to track and stop illegal activities.
Companies like WantToPay and Dock help criminals by issuing payment cards that can be used anywhere.
The U.S. has passed laws to regulate stablecoins, but criminals are still finding ways to use them for illegal purposes.
Tether, the most popular stablecoin, is based in El Salvador and holds a lot of U.S. Treasurys, making it difficult for authorities to take action against it.
Stablecoins are being used by criminals to launder money and evade sanctions, with up to $25 billion in illicit transactions in 2023.
Companies like WantToPay and Dock issue payment cards funded by stablecoins, allowing criminals to spend money anonymously.
The U.S. has passed the GENIUS Act to regulate stablecoins, but criminals are still finding ways to use them for illegal activities.
Tether, the most popular stablecoin, is based in El Salvador and holds over $112 billion in U.S. Treasurys, making it difficult for authorities to take action against it.
Efforts to police the offshore crypto ecosystem have repeatedly fallen short, with sanctioned tokens continuing to circulate.
- Who
- Criminals, including smugglers, money launderers, and sanctioned individuals, are using stablecoins for illicit activities.
- What
- Stablecoins, a type of cryptocurrency tied to the U.S. dollar, are being used to launder money and evade sanctions.
- When
- The use of stablecoins for illicit activities has been increasing, with up to $25 billion in illicit transactions in 2023.
- Where
- Stablecoins are being used globally, with companies like WantToPay and Dock facilitating transactions.
- Why
- Stablecoins bypass traditional financial oversight, making it easier for criminals to move money across borders and evade sanctions.
- Stablecoins
- Cryptocurrency tied to the U.S. dollar, used for illicit transactions
- Illicit Transactions
- Up to $25 billion in illicit transactions involving stablecoins in 2023
- Tether
- Most popular stablecoin, used for money laundering and sanction evasion
- WantToPay
- Company issuing anonymous Visa and Mastercard cards funded by stablecoins
- Dock
- Brazilian financial-technology firm issuing cards for companies like WantToPay
- GENIUS Act
- U.S. legislation establishing a federal regulatory system for stablecoins
- Tether's Value
- Over $180 billion worth of stablecoins in circulation
- Tether's U.S. Treasurys
- Holds over $112 billion in U.S. Treasurys