Chinese Crime Networks Laundered $16 Billion in Crypto in 2025, Report Finds

Chinese-language money laundering networks, often referred to as CMLNs, funneled more than $16 billion in illicit funds through cryptocurrencies last year, underscoring the growing role of digital assets in global organized crime. Chainalysis estimates the broader illicit crypto ecosystem reached over $82 billion in 2025.

These networks primarily operate through Telegram-based channels, where launderers openly advertise services using photos of cash piles, testimonials, and so-called “guarantee” platforms that act as informal escrow or matchmaking hubs. While the platforms do not directly process transactions, they are central to arranging illicit deals.

Beyond money laundering, the same channels facilitate a wide range of criminal activity, including scam operations, human trafficking, and the sale of equipment used in Southeast Asian scam centers. Clients range from traditional crime syndicates to sanctioned state-linked actors, including funds tied to North Korea, according to Chainalysis.

Cryptocurrencies—especially stablecoins like USDT and USDC—are favored for their liquidity, ease of transfer, and lower volatility compared with assets such as Bitcoin or Ethereum. This helps criminal actors minimize losses while moving large sums discreetly across borders.

Southeast Asia has emerged as a key hub for these operations, particularly in countries such as Cambodia and Myanmar, where weaker regulation and corruption make enforcement difficult. While China has banned crypto trading and aggressively cracks down on organized crime, many groups have simply relocated abroad.

Chainalysis estimates these networks laundered roughly $44 million per day in 2025. Despite increased scrutiny and enforcement efforts, experts warn that such groups are highly adaptive and likely to continue shifting tactics as authorities close in.