^{Getty Images}

Chinese-Language Networks Dominate Crypto Crime

Chinese-language cryptocurrency money laundering networks funneled an estimated $16.1 billion in illicit funds through digital assets in 2025, representing roughly 20% of the global crypto crime market, according to blockchain analytics firm Chainalysis. The total global illicit crypto activity last year exceeded $82 billion, highlighting the scale of organized digital crime.

These networks, known as CMLNs, primarily operate via Telegram “guarantee” platforms, which serve as informal marketing and escrow channels. Launderers use these groups to advertise services, share proof of liquidity, and connect with clients ranging from organized crime syndicates to sanctioned state actors.

How Telegram Hubs Facilitate Illicit Activity

The Telegram channels do not process transactions directly but act as a central hub for arranging deals, often featuring visual proof such as piles of cash and testimonials to build credibility. Beyond laundering, these platforms are reportedly used for human trafficking, illicit gambling, and the sale of Starlink dishes to Southeast Asian scam centers.

Andrew Fierman, Head of National Security Intelligence at Chainalysis, said that these operations also include North Korean-linked crypto hacks and other sanctioned activities, emphasizing the international and highly organized nature of these networks.

Criminology experts like Mark Button of the University of Portsmouth note that these are large, well-funded organizations, not small-time operators. “These are sophisticated networks that operate with resources far beyond a few criminals in a back room,” Button said.

Methods and Tools of Crypto Laundering

CMLNs employ at least six primary laundering techniques, often relying on digital assets like Bitcoin, Ethereum, USDT, and USDC to transfer funds discreetly. Stablecoins like USDT and USDC are particularly attractive due to their low volatility, reducing the risk of loss during transactions.

Fierman explained, “If you are involved in illicit activity, the last thing you want is to lose money due to crypto volatility. Stablecoins allow launderers to move funds efficiently while maintaining value.”

Organized crime groups also leverage casinos and legitimate-looking enterprises to launder money through inflated revenue, a tactic increasingly observed in Southeast Asia, where unlicensed and licensed casinos have links to criminal syndicates.

Southeast Asia as a Base for Transnational Crime

As China continues to tighten crypto regulations and enforcement, criminal networks have shifted operations to countries like Cambodia and Myanmar, which have weaker legislation and, in some cases, corrupted officials enabling illicit activity.

Despite Chinese crackdowns—including the execution of 11 Myanmar-based scammers for murder, fraud, and illegal gambling—criminal networks have shown remarkable resilience. Chainalysis estimates these groups laundered around $44 million per day in 2025.

Fierman added, “These networks evolve constantly. Once authorities detect one avenue, they shift to another, maintaining the flow of illicit funds.”

The Challenge of Global Enforcement

The report underscores the complexity of cross-border enforcement against crypto crime. The combination of anonymity, digital liquidity, and decentralized communication platforms makes it difficult for authorities to track or shut down operations entirely.

Experts warn that while governments and blockchain analytics firms are making progress, Chinese-language crypto laundering networks are likely to continue adapting, leveraging technology and international jurisdictions to stay ahead of regulators.

These findings highlight the urgent need for coordinated global action, improved digital surveillance, and regulatory frameworks to combat the growing sophistication of transnational crypto crime.

‍