Chinese Networks to Cleanse $16 Billion Crypto by 2025
According to a report, Chinese-language criminal networks transferred significant amounts of illegal money through cryptocurrencies last year, illustrating the growing trend of utilizing digital assets to conceal and relocate illicit funds internationally. The report underscores the reliance of these operations on encrypted messaging apps, stablecoins, and intricate international connections to maintain an advantage over law enforcement. In 2025, these networks funneled $16.1 billion in illicit funds through cryptocurrency transactions. The networks, referred to as CMLNs, constituted approximately one-fifth of the global illicit cryptocurrency market in the previous year. It is projected that the total illegal crypto ecosystem would exceed $82 billion by 2025. The report indicated that these criminal groups primarily function through channels and chat groups on Telegram. On these platforms, money launderers candidly promote their services to prospective clients. To foster trust, numerous posts feature images of substantial cash reserves and public endorsements asserting quick service and significant liquidity. The news report indicated that these Telegram spaces frequently serve as informal marketplaces for illegal transactions.
Referred to as “guarantee” platforms, these channels function as marketing and matchmaking hubs. They facilitate the connection between sellers and buyers and occasionally serve as fundamental escrow services, despite not directly managing the transactions. In addition to laundering funds, these Telegram-based platforms serve as venues for various other criminal activities. According to Andrew Fierman these include human trafficking and the sale of Starlink satellite dishes used in scam centres across Southeast Asia. The client base encompasses a diverse array of individuals and organizations. “We have seen everything from North Korean money and DPRK-related hacks going through, to a whole host of other illicit activity,” Fierman stated in an interview. He added that prospective customers include organized crime groups as well as sanctioned state-linked actors. The news report indicated that criminals have pinpointed six primary techniques employed by CMLNs for money laundering, with the majority depending on cryptocurrencies to transfer funds discreetly and swiftly.
Fierman stated that crypto attracts criminals due to its liquidity, speed, and relative anonymity. This also mitigates the likelihood of funds being frozen, a situation frequently encountered on conventional banking platforms. Stablecoins like USDT, issued by Tether, and Circle’s USDC have gained significant popularity. Due to their peg to fiat currencies such as the US dollar, they exhibit lower volatility compared to Bitcoin or Ethereum. Mark Button stated that numerous crime groups utilizing crypto laundering services also transfer funds through businesses that appear legitimate. “Casinos are a classic means to launder any criminal proceeds,” he said, explaining that inflated revenues are often used to mask illegal funds. A 2024 UN report indicates that Southeast Asia has become a significant center for both licensed and illegal casinos associated with organized crime. Although these networks primarily function in Mandarin, a significant number of transactions stem from regions beyond China, notably Cambodia and Myanmar.
China has implemented a ban on cryptocurrency trading and enforces stringent anti-money laundering regulations. Consequently, numerous Chinese criminal organizations relocate their activities to nations with less stringent law 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 that these networks laundered approximately $44 million each day in 2025. Fierman cautioned that, despite enforcement efforts, the networks are unlikely to vanish.
