In 2025, Chinese-language money laundering networks utilized cryptocurrency to move approximately 16.1 billion dollars in illegal funds, representing nearly twenty percent of all illicit digital asset activity. These sophisticated organizations leverage Telegram-based escrow platforms to facilitate a wide range of criminal trades, including human trafficking and the distribution of stolen assets.
A recent report from blockchain analysis firm Chainalysis reveals that Chinese-language money laundering networks have become a dominant force in the digital underground, processing over 16 billion dollars in 2025. These organizations, which represent roughly one-fifth of the global illicit crypto ecosystem, operate with the resources and scale of major corporations rather than small-scale criminal outfits. By utilizing messaging platforms like Telegram, these groups create informal escrow services where they advertise their liquidity and success through public testimonials and images of bulk cash.
The hubs for these activities, often called guarantee platforms, serve as the primary marketing centers for arranging illegal deals. While the platforms themselves do not execute the financial transfers, they provide the essential infrastructure for connecting vendors with clients. Experts indicate that the scope of trade on these networks extends beyond financial crimes to include human trafficking and the sale of specialized technology used in regional scam centers. The client base is equally diverse, ranging from traditional organized crime syndicates to state-sponsored actors seeking to move funds discreetly.
Cryptocurrencies are the preferred medium for these transactions due to their high liquidity and the ease with which users can bypass traditional banking restrictions. By operating outside of standard financial institutions, these networks can avoid the risk of asset freezes that typically occur when suspicious activity is detected by banks. This digital anonymity allows for the rapid movement of funds across international borders, making it difficult for law enforcement to track the flow of money in real-time.
Stablecoins like USDT and USDC are particularly popular within these laundering networks because they are pegged to the value of the U.S. dollar. Unlike volatile assets like Bitcoin or Ethereum, stablecoins protect criminal proceeds from market fluctuations during the laundering process. Because the goal is to move funds with as little loss as possible, the predictable value of these digital assets makes them the ideal vehicle for high-volume illicit transactions.
Security experts emphasize that these networks are not isolated incidents but represent a systemic evolution in global organized crime. The infrastructure used by Chinese-language groups mirrors similar illicit networks observed in other regions, such as India and West Africa, suggesting a standardized global model for digital money laundering. As these groups continue to refine their methods, they pose an increasing challenge to international security and the integrity of the global financial system.
Source: Chinese Organized Crime Networks Moved Sixteen Billion In Crypto In 2025