Chinese-language crypto laundering networks surge as illicit on-chain flows hit $82B

Cryptocurrency money laundering has expanded dramatically over the past five years, with Chinese-language networks emerging as a central pillar of the global underground economy, according to new research from blockchain analytics firm Chainalysis.

The report estimates that more than $82 billion flowed through on-chain laundering channels in 2025, up from roughly $10 billion in 2020. Chainalysis attributes the surge not only to the growing liquidity of crypto markets but also to the professionalization of laundering services that operate openly across messaging platforms and blockchains.

Chinese-language money laundering networks (CMLNs) now account for around 20% of known laundering activity, the firm said. Inflows to these networks have grown thousands of times faster than those to centralized exchanges or decentralized finance protocols since 2020, as criminals increasingly avoid venues where funds can be frozen.

Chainalysis identified at least $16.1 billion processed by CMLNs in 2025 alone, spread across 1,800 active wallets and six core service types. These range from “running point” brokers who provide initial access to bank accounts and exchange wallets, to sprawling money mule networks, informal OTC desks and so-called “Black U” services that openly trade tainted crypto at a discount.

At the center of the ecosystem sit Telegram-based “guarantee platforms,” which serve as escrow and reputation hubs that connect buyers and sellers of laundering services. Even when individual channels are disrupted, vendors quickly migrate to other channels, keeping operations largely intact.

The speed and scale of these networks suggest deep links to off-chain criminal organizations, including scam operations and cybercrime rings. While recent sanctions and advisories have brought greater scrutiny, Chainalysis said the findings highlight how crypto-enabled laundering has evolved into a resilient, global service industry that adapts quickly to enforcement pressure.

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