Chinese Money Laundering Networks Funneled $16.1 Billion in Crypto in 2025

In 2025, Chinese-language money laundering networks processed $16.1 billion in illegal crypto, nearly 20% of the global underground economy.

Telegram Channels as Laundering Hubs

Chinese-language money laundering networks funneled an estimated $16.1 billion in illicit funds through cryptocurrency transactions in 2025, according to a new report from blockchain analytics firm Chainalysis. The study found these networks — known as CMLNs — accounted for nearly 20% of the global illicit crypto economy, which Chainalysis valued at more than $82 billion last year.

CMLNs operate largely through Telegram guarantee platforms, where launderers advertise services with photos of cash and client testimonials. These channels act as informal escrow systems, connecting vendors with customers while facilitating illicit deals. The blockchain analytics firm noted that beyond laundering, these platforms also host human trafficking operations and sales of Starlink satellite dishes to scam centers in Southeast Asia.

Andrew Fierman, Head of National Security Intelligence at Chainalysis, said the networks serve both organized crime groups and sanctioned state actors.

“We’ve seen everything from North Korean money and DPRK-related hacks moving through these channels to a wide range of other illicit activity,” Fierman told CNBC.

Criminology professor Mark Button of the University of Portsmouth stressed the scale of the operations:

“These are very large, well-resourced organizations. This is not like a few criminals operating out of a back room flat.”

According to CNBC, the report outlined six laundering techniques, with heavy reliance on stablecoins such as USDT and USDC. Fierman explained that criminals prefer stablecoins for their liquidity, anonymity and low volatility.

Also read: AI Phishing, Supply Chains, and $3.5B Lost — Crypto’s Brutal 2025

Casinos and Crime Fronts

Button added that many groups also launder funds through casinos, inflating revenue figures to disguise criminal proceeds. A 2024 UN report highlighted Southeast Asia’s growing role as a hub for both licensed and unlicensed casinos tied to organized crime.

While most networks communicate in Mandarin, many transactions originate in Cambodia and Myanmar, where syndicates run elaborate scam centers. China, which cracked down on cryptocurrency trading in 2021, has aggressively pursued scams. Recently, state media reported that 11 members of a Myanmar-based syndicate were executed on charges including homicide, fraud, and illegal casino operations.

Still, weaker laws and corruption in Southeast Asia allow Chinese groups to relocate and continue operations. Chainalysis estimated that CMLNs laundered about $44 million per day in 2025. Despite enforcement efforts, Fierman warned the networks remain highly adaptive:

“This is how illicit actors operate. They evolve, and once one gets detected, they hop to another avenue.”

FAQ 💡

• What are CMLNs? Chinese-language money laundering networks (CMLNs) moved $16.1B in illicit crypto in 2025, nearly 20% of global crime volume.
• Where do they operate? Most activity runs through Telegram escrow channels, with hubs in Cambodia and Myanmar serving Southeast Asia scams.
• Who uses these networks? Chainalysis says organized crime groups and sanctioned state actors, including DPRK-linked hackers, rely on CMLNs.
• How do they launder funds? Criminals favor stablecoins like USDT/USDC and casinos in Southeast Asia to disguise proceeds and preserve value.