How a Cryptocurrency Helps Criminals Launder Money and Evade Sanctions

An investigation has revealed how stablecoins — cryptocurrencies pegged to the US dollar that exist largely beyond traditional financial oversight — have become a practical tool for criminals and sanctioned individuals to move funds across borders almost instantly and convert them back into spendable money, often without detection.

A Chainalysis report from February estimated that up to $25 billion in illicit transactions involved stablecoins last year. A New York Times…