Chinese Organized Crime Networks Moved $16 Billion in Cryptocurrency in 2025, Report Reveals
February 1, 2026 – By Matthew Chin
A recent report by blockchain analytics firm Chainalysis has uncovered that Chinese-language organized crime networks funneled approximately $16.1 billion in illicit funds through cryptocurrency transactions in 2025. This staggering figure accounts for roughly 20% of the global illicit crypto market, which Chainalysis estimates to be worth more than $82 billion.
Cryptocurrency as a Vehicle for Criminal Enterprises
According to the report, these Chinese money laundering networks (CMLNs) primarily operate through Telegram-based channels known as “guarantee platforms.” These platforms serve as informal escrow services and marketing hubs, linking money launderers, criminals, and sanctioned actors. Operators frequently advertise on these channels with images showcasing large stacks of cash alongside testimonials to bolster their credibility and lure potential clients.
Andrew Fierman, Head of National Security Intelligence at Chainalysis, emphasized the breadth of illicit activities facilitated through these hubs. "Beyond money laundering, these platforms are also involved in human trafficking and the sale of Starlink satellite equipment used in Southeast Asian scam centers," Fierman noted.
Scope and Scale of Operations
Mark Button, a criminology professor at the University of Portsmouth, highlighted the significant organizational strength of these groups. "These are very large, well-resourced organizations. This is not like a few criminals operating out of a back room flat," he said. He explained that similar networks have been observed in other regions, such as India and West Africa.
Fierman further stated that the clientele for these services spans from transnational organized crime syndicates to sanctioned state actors, citing examples including North Korean-related hacks and money movements.
Money Laundering Techniques and Preference for Stablecoins
The report identified six predominant laundering techniques employed by these Chinese-language networks, often relying on the liquidity and anonymity provided by cryptocurrencies. Stablecoins such as Tether’s USDT and Circle’s USDC are preferred because their value remains relatively stable compared to more volatile cryptocurrencies like Bitcoin or Ethereum. This stability helps minimize losses during the laundering process.
“If you are involved in illicit activity, the last thing you want is to be losing money due to market swings,” 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 Southeast Asia as Criminal Hubs
Many of the organized crime groups use legitimate-seeming enterprises such as casinos to further launder these illicit proceeds through inflated revenue reporting. Southeast Asia has increasingly become a hotspot for such operations, with numerous licensed and unlicensed casinos linked to transnational crime syndicates.
A 2024 United Nations Office on Drugs and Crime report highlighted the prevalence of scam centers in countries like Cambodia and Myanmar—locations now frequented by Chinese crime networks due to China’s strict crackdown on domestic illicit crypto activities.
Mark Button commented, “China has been very effective at shutting down these scams domestically because the government generally does not tolerate organized crime.”
Supporting this, China’s state media outlet Xinhua recently reported the execution of 11 members of a Myanmar-based scam syndicate on charges including homicide, fraud, and illegal casino operations.
Challenges for Enforcement
China banned cryptocurrency trading in 2021, citing its pervasive use in illicit activities. Consequently, many Chinese criminal groups have shifted operations overseas to jurisdictions with weaker regulatory frameworks and corruption issues, notably Cambodia and Myanmar, allowing them greater operational freedom.
Despite proactive international enforcement efforts, disrupting these syndicates remains challenging due to their large scale and sophisticated methods. Chainalysis estimates these networks laundered around $44 million daily in 2025 alone.
“These illicit actors are highly adaptive,” Fierman explained. “Once authorities clamp down on one avenue, they swiftly shift to another to evade detection.”
About the Report:
The findings stem from blockchain transaction analyses and open-source intelligence by Chainalysis, providing insight into the techniques and scale of Chinese-language crypto money laundering networks. The study examined communication patterns on Telegram, transaction flows, and ancillary criminal activities connected to these illicit operations.
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Contact Matthew Chin at CNBC for any inquiries or confidential tips.