Illicit Crypto Activity: Scams, Sanctions, and Shadow Markets Explained

When we talk about illicit crypto activity, illegal or unethical use of cryptocurrency that avoids regulation, enables crime, or exploits loopholes. Also known as dark crypto, it’s not just about hackers and thieves—it’s about governments, power grids, and everyday people trying to survive under sanctions. This isn’t theoretical. In Iran, cheap electricity funded by the state powers massive Bitcoin mines that earn billions in foreign cash—while citizens face 12-hour daily blackouts. The same crypto that helps people bypass financial restrictions also fuels a parallel economy that global regulators can’t fully control.

Then there’s the FATF blacklist, a global list of countries deemed high-risk for money laundering and terrorist financing. Also known as grey-listed nations, it’s pushed Iran into crypto dependency, turning Bitcoin into a lifeline for ordinary people—but also a target for crackdowns. Meanwhile, countries like Angola banned crypto mining outright, with prison sentences up to 12 years, because mining rigs were draining their failing power system. These aren’t isolated cases. They’re symptoms of a system where crypto’s decentralization clashes with national control. And on the ground, scams thrive in the shadows. Tokens like Deutsche Mark (DDM), a fake stablecoin with zero supply and no team. Also known as exit scam coin, it’s designed to look real until the developers vanish with investor funds. Or fake airdrops like RBT Rabbit, where CoinMarketCap shows $0 price and zero volume—but scammers still push “free tokens” on Telegram. These aren’t bugs in the system. They’re features of a space with weak oversight.

What you’ll find here isn’t just a list of bad actors. It’s a map of where crypto goes wrong: state-backed mining that steals from the poor, dead tokens masquerading as investments, exchanges with no audits and no reviews, and regulatory traps that catch honest users. You’ll see how Pakistan allocated 2,000 MW of electricity to mining, how India taxes every trade at 30%, and how Taiwan’s only licensed exchange became a safe harbor. This collection doesn’t just warn you—it shows you the real patterns behind the noise. If you’ve ever wondered why a coin with no team, no utility, and no trading volume still has a Twitter account pushing it, you’ll find the answer here.