2025 is a critical turning point for risk management in the crypto industry. On-chain data tracking shows that the inflow of funds into illegal crypto addresses has reached $154 billion, a surge of 162% compared to the same period last year. Even more noteworthy is that entities subject to international sanctions have seen their fund inflows soar by 694%. What does this number reflect?

The on-chain ecosystem is undergoing structural changes. Illegal crypto infrastructure, once controlled by cybercriminals and organized crime groups, is now being utilized by government agencies. These governments are not only leveraging existing specialized service systems but are also beginning to build their own customized on-chain infrastructure. Their goal is clear — to facilitate large-scale fund transfers within the framework of international sanctions.

This shift is disrupting the entire industry ecosystem. On one hand, the professionalism of crypto crime groups continues to upgrade, with cross-border crime networks' procurement and money laundering chains becoming increasingly sophisticated; on the other hand, government involvement has elevated the scale and concealment of on-chain illegal activities to a new level.

For industry participants such as trading platforms, wallets, and DeFi protocols, the compliance challenges they face are unprecedented. Protecting consumer rights and maintaining national security have become more sensitive issues. Every large transfer on the chain and every emerging address could become a risk point. This is no longer just a matter of anti-money laundering; it involves systemic risks to global economic security.

A phenomenon worth reflecting on is that: while cryptographic technology was originally designed to circumvent centralized control, it has gradually become a tool for evading sanctions and hiding funds. When governments actively join this game, the risk profile of the entire on-chain ecosystem is being redefined.