Chinese Organized Crime Networks Moved $16 Billion in Cryptocurrency in 2025, Report Finds
By Matthew Chin | Published February 1, 2026
A new report has revealed that Chinese-language organized crime networks funneled approximately $16.1 billion in illicit funds through cryptocurrency transactions in 2025. This figure represents about 20% of the global cryptocurrency crime market, which Chainalysis, a leading blockchain analytics firm, estimates to be valued at over $82 billion.
The Role of Telegram “Guarantee” Platforms
According to Chainalysis’s Tuesday report, these Chinese-language money laundering networks (CMLNs) operate primarily through Telegram, a popular messaging platform. Within Telegram, they run “guarantee” platforms—channels and chat groups that serve as marketing hubs and informal escrow services. These platforms connect launderers, criminals, and sanctioned actors by advertising money laundering services to prospective clients. Visual proof of liquidity, such as pictures of large cash amounts and public testimonials, are commonly used to attract customers.
While the Telegram platforms do not directly control transactions, they act as the central conduit for arranging illicit deals, facilitating the flow of illegal funds. In addition to money laundering, these networks use Telegram to trade in other criminal enterprises, including human trafficking and the sale of satellite communication devices like Starlink dishes, which are reportedly employed in scam operations across Southeast Asia.
Southeast Asia: A Growing Hub Amidst China’s Crackdown
enforcement efforts in China have pushed these criminal syndicates to shift operations to Southeast Asian countries, including Cambodia and Myanmar, where regulatory oversight and enforcement are comparatively lax. These jurisdictions serve as bases for elaborate scam centers and other illicit enterprises.
Andrew Fierman, Head of National Security Intelligence at Chainalysis, highlighted that clients utilizing these platforms range from organized crime syndicates to sanctioned state actors. “We have seen everything from North Korean money and DPRK-related hacks going through, to a whole host of other illicit activity,” he told CNBC.
Techniques and Tools Employed
The Chainalysis report identified six primary laundering techniques employed by Chinese-language networks, predominantly utilizing cryptocurrencies due to their liquidity, ease of transfer, and relative anonymity. Stablecoins such as Tether’s USDT and Circle’s USDC are favored for their low volatility, helping criminals avoid losses during the laundering process.
“If you are involved in illicit activity, the last thing you want to be doing is losing more money,” Fierman explained. “You already have to pay money for the laundering process… the last thing you want is for there to be a really bad week on Bitcoin and lose another 10% of your money.”
Casinos and Organized Crime Intersections
Criminology Professor Mark Button of the University of Portsmouth noted the common use of casinos as a method to launder proceeds from crime. These legitimate-looking enterprises often wash money through inflated revenue figures. Since at least 2022, Southeast Asia has seen growth in licensed and unlicensed casinos linked to organized crime, according to a 2024 United Nations Office on Drugs and Crime report.
“These are very large, well-resourced organizations. This is not like a few criminals operating out of a back room flat,” Button stated.
China’s Response and Continued Challenges
China maintains strict laws on money laundering and effectively banned cryptocurrency trading in 2021, citing its use in organized crime. The government has actively dismantled numerous criminal operations, including a recent crackdown reported by state media Xinhua, where 11 members of a Myanmar-based scam syndicate were executed on charges including homicide and fraud.
However, despite China’s efforts, the mobility and evolving tactics of these networks complicate enforcement. Button underscored that Chinese gangs exploit weaker legislation and corruption in Southeast Asia to continue operations.
Chainalysis estimates that these networks laundered some $44 million per day in 2025 alone. While law enforcement agencies worldwide pursue these illicit actors, experts caution that many networks adapt quickly to new enforcement measures.
“This is how illicit actors operate. They evolve, and once one gets detected, they hop to another avenue,” Fierman said.
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Contact Matthew Chin at CNBC for comments and tips.
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