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

Singapore: Chinese-language organised crime networks moved an estimated $16.1 billion in illicit funds through cryptocurrency transactions in 2025, accounting for nearly 20 per cent of global crypto-related crime, according to a new report by blockchain analytics firm Chainalysis.

The report estimates the global illicit cryptocurrency market at more than $82 billion last year, with Chinese-language money laundering networks playing a central role in moving funds across borders using digital assets.

According to the findings, these networks operate primarily through chat groups and channels on Telegram, where money launderers advertise services to criminal clients. These channels, known as “guarantee” platforms, function as informal escrow and marketing hubs linking launderers with organised crime groups, scammers and sanctioned actors.

While the platforms do not directly process transactions, Chainalysis said they serve as the main coordination points for arranging illicit crypto deals.

Beyond money laundering, the report found that the same platforms facilitate other criminal activities, including human trafficking and the sale of satellite internet equipment used in scam centres across Southeast Asia.

Chainalysis said cryptocurrencies appeal to criminal networks because of their liquidity, ease of transfer and relative anonymity. Stablecoins such as USDT and USDC were identified as preferred tools, as their lower volatility helps criminals limit losses while moving funds.

The report noted that many of these networks also rely on legitimate-looking businesses to disguise criminal proceeds. Casinos were identified as a common channel, allowing illicit funds to be blended into inflated revenue streams.

Southeast Asia has emerged as a key base for these operations in recent years. As China has tightened enforcement and maintained a ban on cryptocurrency trading since 2021, criminal groups have increasingly shifted operations to countries such as Cambodia and Myanmar, where regulatory oversight is weaker.

According to Chainalysis, the networks laundered an average of $44 million per day in 2025. Despite growing international efforts to disrupt these operations, analysts warned that enforcement remains difficult due to the sophistication of the networks and the complexity of cross-border investigations.

The report concluded that many of these groups are likely to continue adapting their methods to evade detection as authorities intensify crackdowns.