The rise of Chinese-language networks in crypto crime
According to the reportillegal money laundering activity in the chain has increased dramatically over the past five years. In 2020, cryptocurrency laundering was estimated at around $10 billion. By 2025, that figure had risen to more than $82 billion.
A key driver of this growth is the rapid rise of Chinese-language money laundering networks, often referred to as CMLNs. In 2025, these networks were responsible for roughly 20% of all identified illicit crypto money laundering activities on-chain.
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Chainalysis noted that this regional concentration is further supported by off-ramping behavior observed on the blockchain. As detailed in the report, CMLNs now routinely launder more than 10% of the money stolen through so-called “pig slaughter” scams.
The pace at which these networks have grown stands out even within the broader crypto crime landscape. Since 2020, inflows into identified CMLNs have increased 7,325 times faster than those into centralized exchanges (CEXs).
Its growth has also outpaced other money laundering channels, growing 1,810 times faster than other money laundering channels decentralized finance (DeFi) platforms and 2,190 times faster than illegal flows within the chain that remain within criminal ecosystems.
While CMLNs are not the only actors involved in cryptocurrency laundering, Chainalysis found that Chinese-language, Telegram-based services now represent a disproportionate share of attributed global money laundering activity.
Cross-border crime on a large scale
The report also shows that CMLNs operate openly on multiple platforms and rely on complex, multi-layered systems. Their activities are characterized by industrial-level processing capacity and a high degree of technical sophistication.
In 2025 alone, Chainalysis identified six different types of services that make up the CMLN ecosystem. Combined, these services processed $16.1 billion in illegal inflows during the year.
The number of active entities within these networks has also grown rapidly, from a small number of wallets just a few years ago to more than 1,799 active on-chain wallets in 2025.
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Tom Keatinge, director of the Center for Finance & Security at the Royal United Services Institute, said the speed and scale of these networks are the result of converging global forces.
He noted that Chinese money laundering networks have rapidly evolved into “multi-billion dollar cross-border operations” providing efficient and competitively priced services to organized crime groups across Europe and North America.
Chris Urben, Managing Director at Nardello & Co, highlighted another important shift within these networks. He explained that Chinese money laundering groups have increasingly moved away from informal value transfer systems such as traditional underground banking methods.
Instead, Urben emphasized that these criminals have embraced cryptocurrencies as a “faster and more discreet way” to move money across borders, eliminating the need for complex manual ledgers spread across multiple jurisdictions.
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