How Chinese-language networks laundered $16 billion via crypto in 2025

Known as CMLNs, these networks laundered $16.1 billion via cryptocurrency in 2025 and accounted for nearly 20 per cent of the global illicit crypto market last year

Chinese-language criminal networks moved vast sums of illegal money through cryptocurrencies last year, showing how digital assets are increasingly being used to hide and shift illegal funds across borders, CNBC reported citing blockchain analytics firm Chainalysis.

 

The report highlights how these operations rely on encrypted messaging apps, stablecoins and complex international links to stay ahead of law enforcement.

 

 $16 billion laundered through crypto in 2025

 

These networks funnelled $16.1 billion in illicit funds through cryptocurrency transactions in 2025. The networks, known as CMLNs, made up about one-fifth of the global illicit cryptocurrency market last year.

 

Chainalysis estimated the overall illegal crypto ecosystem at more than $82 billion in 2025.

 

 

The news report said these criminal groups mainly operate through channels and chat groups on Telegram. On these platforms, money launderers openly advertise their services to potential clients.

 

To build trust, many posts include photos of large stacks of cash and public testimonials claiming fast service and deep liquidity. These Telegram spaces often act as informal marketplaces for illegal transactions, the news report said.

 

Known as “guarantee” platforms, the channels serve as marketing and matchmaking hubs. They connect sellers and buyers and sometimes act as basic escrow services, even though they do not directly handle the transactions.   

 

More than just money laundering

 

Beyond laundering funds, these Telegram-based platforms are used for other criminal activities. These include human trafficking and the sale of Starlink satellite dishes used in scam centres across Southeast Asia, according to Andrew Fierman, head of National Security Intelligence at Chainalysis.

 

The client base is wide-ranging. “We have seen everything from North Korean money and DPRK-related hacks going through, to a whole host of other illicit activity,” Fierman told CNBC.

 

Prospective customers include organised crime groups as well as sanctioned state-linked actors, he added.

 

Why criminals prefer crypto and stablecoins

 

The news report said that criminals identified six major techniques used by CMLNs to clean money, most of which rely on cryptocurrencies to move funds quietly and quickly.

 

Fierman said crypto appeals to criminals because of its liquidity, speed and relative anonymity. It also reduces the risk of funds being frozen, which is common on traditional banking platforms.

 

Stablecoins such as USDT, issued by Tether, and Circle’s USDC are especially popular. Because they are pegged to fiat currencies like the US dollar, they are less volatile than Bitcoin or Ethereum.

 

Casinos and Southeast Asia’s role

 

Mark Button, a criminology professor at the University of Portsmouth, told CNBC that many crime groups using crypto laundering services also move money through legal-looking businesses.

 

“Casinos are a classic means to launder any criminal proceeds,” he said, explaining that inflated revenues are often used to mask illegal funds.

 

Southeast Asia has emerged as a key hub for both licensed and illegal casinos linked to organised crime, according to a 2024 UN report. While these networks mainly operate in Mandarin, many transactions originate outside China, including in Cambodia and Myanmar.

 

Crackdowns, but challenges remain

 

China bans cryptocurrency trading and has strict anti-money laundering laws. As a result, many Chinese criminal groups shift operations to countries with weaker enforcement.

 

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

 

Chainalysis estimated these networks laundered about $44 million every day in 2025. Despite enforcement efforts, Fierman warned that the networks are unlikely to disappear.