- TRM Labs reached a $1B valuation as demand surged for blockchain tools used by law enforcement worldwide.
- Illicit crypto activity hit $158B in 2025, driven by sanctions evasion and large-scale hacking incidents.
- Russia-linked stablecoins and laundering networks reshaped global crypto crime patterns, says TRM report.
TRM Labs has reached unicorn status following a major funding announcement. The San Francisco startup closed a $70 million Series C round this week.
Fortune reported that Blockchain Capital led the raise alongside major financial firms. The funding values TRM Labs at $1 billion. The company builds blockchain intelligence software for law enforcement and financial institutions.
The founders launched TRM Labs in 2018 after moving to San Francisco. Their goal focused on tracking digital asset activity across blockchains. They believed crypto adoption would demand new tools for risk and compliance. That belief now shapes a company used by agencies worldwide.
TRM Labs Funding Round Draws Major Wall Street Backers
Fortune reported that Blockchain Capital led the Series C round. Goldman Sachs, Bessemer, Brevan Howard, Thoma Bravo, and Citi Ventures joined the raise.
The investor list signals strong institutional interest in blockchain intelligence. TRM Labs now stands among a small group of crypto unicorns.
Cofounder Esteban Castaño said the team focused on second-order consequences of crypto adoption. He explained that massive data flows would require intelligence to manage risk.
The company built software to analyze transactions across multiple blockchains. This strategy differed from that of early competitors,, which focused mainly on Bitcoin.
TRM Labs entered a crowded market dominated by Chainalysis. Chainalysis had a four-year head start in blockchain analytics. However, TRM tracked many tokens before they gained popularity. The company also hired former government investigators to strengthen its expertise.
Law Enforcement Adoption Drives Growth in Blockchain Analytics
TRM Labs became a familiar name among global law enforcement agencies.
Many agencies rely on third-party tools to track illicit crypto activity. Fortune cited IRS agent Jarod Koopman on the importance of analytics software. He said investigations would take far longer without these tools.
Private companies that use crypto for payments also adopted TRM’s platform. The software helps them detect fraud and manage exposure to risky wallets.
Governments and firms now view blockchain data as permanent financial records. This shift increased demand for compliance and monitoring solutions.
Ari Redbord, TRM’s global head of policy, described a surge in AI-driven scams. He said AI-enabled fraud activity rose sharply in recent years. Fortune quoted him calling the threat a global security concern. The company aims to build tools for that moment.
Illicit Crypto Activity Hit Record Levels in 2025
TRM Labs published a 2026 report outlining trends from 2025. Illicit crypto volume reached $158 billion last year. That figure marked a 145% increase from 2024. However, illicit activity formed only 1.2% of total crypto transaction volume.
The report introduced a new metric tied to available liquidity.
Illicit entities captured 2.7% of deployable crypto capital in 2025. This measure frames risk beyond simple transaction counts. It reflects how much usable liquidity criminals controlled.
Hackers stole $2.87 billion across nearly 150 incidents. The Bybit breach alone accounted for $1.46 billion. That single case drove more than half of total losses. Fewer hacks occurred overall compared with the prior year.
Sanctions and Geopolitics Shape Crypto Crime Patterns
Sanctions-related activity rose sharply during 2025, according to TRM Labs.
Russia-linked flows dominated this category. The ruble-pegged stablecoin A7A5 processed more than $72 billion in volume. Wallet clusters tied to the A7 network handled at least $39 billion.
Iran and Venezuela also used crypto for sanctions-limited payments. These countries relied on digital assets as financial infrastructure. Meanwhile, Chinese-language laundering networks processed over $100 billion.
TRM Labs described these networks as core infrastructure for global illicit markets.
The report shows how crypto now intersects with geopolitics and enforcement. Governments track these flows with increasing urgency.
As tokenization and AI reshape payments, monitoring tools gain strategic importance. TRM Labs continues expanding amid rising demand for blockchain intelligence.
