^{Photo: Nikkei Asia}

Chinese-language organized crime networks moved an estimated $16.1 billion in illicit funds through cryptocurrency in 2025, highlighting the growing scale and sophistication of global crypto-enabled money laundering operations.

According to blockchain analytics firm Chainalysis, these groups accounted for roughly 20% of all illegal cryptocurrency activity worldwide last year. In total, Chainalysis estimates the broader crypto crime economy surpassed $82 billion in 2025, underscoring how digital assets continue to be exploited by professional criminal syndicates despite tighter regulation and enhanced monitoring tools.

On average, the Chinese-language networks alone processed close to $44 million per day, making them one of the most dominant forces in the underground crypto economy.

Telegram Becomes the Backbone of Crypto Laundering

At the center of these operations are Chinese-language money laundering networks, often referred to as CMLNs. These groups rely heavily on Telegram, using hundreds of private channels and chat groups to advertise laundering services, recruit clients, and coordinate transactions.

Within these channels, operators routinely post photos of large stacks of cash, screenshots of completed transfers, and public testimonials to demonstrate liquidity and credibility. These spaces function as so-called “guarantee” platforms, informal marketplaces that connect criminals, launderers, and brokers.

While Telegram itself does not process the transactions, these platforms act as critical intermediaries, serving as marketing hubs and escrow-style facilitators where deals are negotiated before funds are moved on-chain.

Beyond financial crimes, investigators have also observed these platforms being used to arrange human trafficking, sell Starlink satellite equipment for scam compounds, and support other illicit supply chains tied to cyber fraud operations across Asia.

Clients range from traditional organized crime syndicates to sanctioned entities and state-linked actors. Analysts say they have tracked proceeds from North Korean cyber thefts and hacking campaigns flowing through the same Chinese-language laundering infrastructure.

Why Criminals Prefer Crypto and Stablecoins

Cryptocurrency remains attractive to illicit actors because of its speed, liquidity, and relative anonymity compared with traditional banking systems. Once funds enter the crypto ecosystem, they can be rapidly split, mixed, and transferred across borders in minutes.

Stablecoins play a particularly important role. Tokens such as USDT and USDC, which are pegged to the U.S. dollar, allow criminals to avoid the extreme price swings associated with Bitcoin or Ethereum. This stability helps reduce transaction risk and keeps laundering costs predictable.

For criminal networks already paying significant fees to brokers and intermediaries, avoiding additional losses from market volatility is a priority. Stablecoins also offer deep liquidity across exchanges and peer-to-peer markets, making them ideal for moving large sums discreetly.

Chainalysis identified six primary laundering methods used by these networks, including layering transactions across multiple wallets, using over-the-counter brokers, exploiting decentralized finance tools, and converting crypto into cash through informal banking systems.

Casinos and Front Businesses Still Play a Key Role

Despite the heavy use of digital assets, crypto is only one part of a broader laundering ecosystem.

Many organized crime groups continue to rely on traditional techniques alongside blockchain-based transfers. Casinos remain a favored channel, allowing criminals to cycle funds through gambling activity and inflate revenue figures to legitimize illicit proceeds.

Licensed and unlicensed casinos across Southeast Asia have increasingly been linked to organized crime since at least 2022. A 2024 United Nations report highlighted the rapid expansion of casino operations in the region, warning that many had become embedded in networks tied to cyber scams, human trafficking, and money laundering.

Criminal syndicates also use shell companies, fake trading operations, and hospitality businesses to blend illegal funds with legitimate income.

Southeast Asia Emerges as a Strategic Base

While these networks primarily operate in Mandarin, their activities extend far beyond mainland China.

Countries such as Cambodia and Myanmar have become key operational hubs, hosting large scam centers and financial infrastructure that supports cross-border laundering. These locations are attractive due to weaker regulatory frameworks, limited enforcement capacity, and, in some cases, corruption among local officials.

China itself maintains strict anti-money laundering laws and has banned cryptocurrency trading since 2021, citing concerns over financial stability and organized crime. Beijing has also intensified crackdowns on scam operations, pushing many criminal groups to relocate abroad.

In one recent case, Chinese state media reported that members of a Myanmar-based scam syndicate were executed following convictions that included fraud, unlawful detention, and illegal casino operations.

Experts say China’s aggressive domestic enforcement has effectively displaced criminal activity rather than eliminating it, driving syndicates into neighboring jurisdictions where oversight is looser.

A Highly Professionalized Criminal Industry

Researchers stress that these are not small, loosely organized groups.

The networks operate like multinational businesses, complete with customer service teams, technical specialists, brokers, recruiters, and security units. They leverage advanced blockchain tools, encrypted communications, and complex financial structures to stay ahead of authorities.

Despite increasing cooperation between governments, crypto exchanges, and analytics firms, enforcement remains difficult due to jurisdictional barriers and the speed at which these groups adapt.

Once a wallet cluster or laundering route is identified, networks quickly shift to new platforms, tokens, or intermediaries, making long-term disruption challenging.

Chainalysis warns that while takedowns and arrests have increased globally, many of these organizations are likely to persist by constantly evolving their tactics.

As one analyst put it, this is now a mature underground industry. When one pathway closes, another opens almost immediately.

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