Chinese-Language Money Laundering Networks Processed $16.1 Billion in Crypto in 2025, Chainalysis Report Reveals
New York, NY – Blockchain analytics firm Chainalysis has unveiled startling findings in its latest report, revealing that illicit cryptocurrency money laundering surged to over $82 billion in 2025, with Chinese-language networks (CMLNs) at the forefront, processing $16.1 billion – nearly 20% of the total.[1][3]
The report, released Tuesday, marks a dramatic escalation from $10 billion in 2020, attributing the boom to the increased accessibility and liquidity of digital assets.[1][3] CMLNs, which emerged during the COVID-19 pandemic, have grown exponentially, handling almost $40 million to $44 million in crypto daily across nearly 1,800 active wallets.[1][3][6] Chainalysis notes that these figures are likely underestimates due to the challenges in tracing anonymous blockchain transactions.[1]
Roots in China’s Capital Controls
The rapid rise of CMLNs is linked to China’s stringent capital controls, imposed to curb rapid outflows of wealth and stabilize financial reserves.[3][4] Wealthy individuals evading these restrictions have created a lucrative liquidity pool, inadvertently fueling organized crime groups in the West.[3] “The professional enablers of this capital flight provide the services necessary to match these two independent yet mutually beneficial needs,” the report states.[3]
Despite crypto trading bans in mainland China, where digital tokens are not recognized as legal tender, these networks thrive using sophisticated techniques.[1] Platforms like Huione and Xinbi act as “guarantee” services, offering escrow to advertise laundering services without directly controlling the activity.[3] Enforcement actions disrupt these platforms, but vendors quickly migrate to alternatives like Telegram-based channels.[1][3]
Connections to Major Scams and Geopolitical Crime
CMLNs have become key players in high-profile scams, laundering over 10% of funds from “pig butchering” schemes – romance frauds where criminals build trust before stealing crypto.[3][4] This shift coincides with declining use of centralized exchanges, which can freeze assets.[3]
Broader illicit trends include North Korean hackers relying on “Chinese laundromats” – professional OTC brokers for off-ramping stolen funds – attributing $1.92 billion to DPRK actors in 2025.[5] Russian sanctions evasion networks, like the A7A5 cluster, processed $72 billion, with significant flows through China and Hong Kong intermediaries.[5]
China’s response has been aggressive: In 2024, authorities sued 3,032 individuals for crypto-related laundering.[1] U.S. efforts include sentencing Chinese national Jingliang Su to 46 months for laundering $36.9 million from American victims.[7]
Challenges in Detection and Regulation
Blockchain’s transparent ledger records wallet addresses, but linking them to individuals remains elusive without advanced tools.[1] Chainalysis employs machine learning and forensic experts to connect on-chain data to real-world activity.[1]
“Chinese-language guarantee platforms, money movement services and associated financial crime networks reveal a complex and resilient ecosystem that continues to adapt despite enforcement efforts,” the firm warns.[1] Experts like Tom Keatinge from the Royal United Services Institute highlight how capital controls paradoxically boosted these networks.[4]
| Year | Total Illicit Laundering | CMLN Share | CMLN Volume |
|---|---|---|---|
| 2020 | $10B | N/A | Emerging |
| 2025 | $82B | 20% | $16.1B |
Global Implications and Calls for Action
Regulators worldwide have long flagged crypto’s role in crime, though it’s one tool among many for criminals.[1] The U.S. Department of Justice has reclassified these groups from “Chinese Money Laundering Organizations” (CMLOs) to broader terms post-2025.[8]
TRM Labs’ 2026 Crypto Crime Report echoes the surge, noting illicit wallets received $158 billion in 2025, up from $64.5 billion in 2024, with stablecoins enabling scale.[5] As crypto integrates into everyday finance, authorities face pressure to target core operators, not just platforms.[3]
Chainalysis emphasizes that while disruptive, piecemeal enforcement fails against resilient networks.[1][3] The report underscores the need for international cooperation to dismantle these underground economies profiting from capital flight and cybercrime.
This story is developing as more details emerge from the Chainalysis report and related investigations.