Chinese-Language Money Laundering Networks Processed $16.1 Billion in Illicit Crypto: Insights from Chainalysis

According to Chainalysis' latest report, the illicit money laundering ecosystem has seen dramatic growth, with projections estimating that illegal activities in cryptocurrency will surpass $82 billion by 2025. Chinese-language money laundering networks have become significant players, responsible for approximately 20% of illicit laundering and processing a staggering $16.1 billion through numerous wallets.

Key Takeaways

The amount of illicit money laundering involving cryptocurrencies is projected to grow from approximately $10 billion in 2020 to over $82 billion by 2025.
Chinese-language money laundering networks are now responsible for about 20% of all known laundering activities.
Inflows to these networks have increased dramatically, outpacing centralized exchanges.
Six primary service types within these networks processed $16.1 billion, with over 1,799 active wallets involved.
“Guarantee platforms” are vital to the laundering process, connecting vendors to users.
Recent enforcement actions underscore the national security threats posed by these laundering networks.

Chainalysis

The Growing Landscape of Illicit Crypto Laundering

The illegal on-chain money laundering environment has experienced rapid development in the past five years. Chainalysis reported in its 2026 Crypto Crime Report that the total amount related to illicit activities is expected to more than quadruple from about $10 billion in 2020 to a remarkable $82 billion by 2025. This significant increase is indicative of greater cryptocurrency accessibility and liquidity, as well as a transformation in money laundering practices.

The report indicates that laundering services have matured, becoming more industrialized and deeply integrated within global criminal networks.

Rise of Chinese-Language Money Laundering Networks

A Major Contributor to Illicit Activities

Chainalysis revealed that Chinese-language money laundering networks (CMLNs) have expanded their presence, now accounting for around 20% of the identified laundering activities as of 2025.

CMLN Statistics

These networks have emerged as crucial endpoints for scam proceeds, laundering over 10% of funds derived from 'pig butchering' scams. This trend is occurring as criminals increasingly move away from centralized exchanges that have the ability to freeze assets.

Since 2020, the funds flowing into CMLNs have surged a staggering 7,325 times faster compared to those going to centralized exchanges, significantly outpacing laundering related to decentralized finance (DeFi) and intra-illicit transfers.

Chainalysis emphasized that Telegram-based services in Chinese-language channels now dominate a notable portion of the global laundering landscape.

The Scale of CMLN Operations

Processing Significant Amounts in Crypto

Chainalysis identified six primary types of services operating within the CMLN ecosystem, collectively handling $16.1 billion in inflows during 2025. The number of active participants has escalated sharply, with over 1,799 active on-chain wallets reported last year.

The rapid scalability of these operations is notable. For example, "Black U" services processed $1 billion within just 236 days, while other categories like OTC desks and money mule networks expanded more gradually.

Overall, Chainalysis estimates that this ecosystem is managing nearly $44 million each day, showcasing the extensive industrial capabilities of these laundering networks.

Central Role of Guarantee Platforms

Linking Vendors and Buyers

“Guarantee platforms” are pivotal within this ecosystem. They operate as marketing and escrow services, effectively linking laundering vendors with customers. Chainalysis identified services such as Huione and Xinbi as dominating this market, despite enforcement actions that may disrupt individual accounts.

Vendors provide various laundering methods, including point broker operations, money mule "motorcades," informal OTC services, discounted illicit crypto sales through Black U, gambling-related laundering, and mixing as well as swapping services.

These networks have shown remarkable resilience, often shifting to alternative platforms in response to challenges while retaining operational continuity.

Addressing National Security Concerns

Growing Threat from Laundering Networks

In light of recent sanctions and advisories, there is increasing recognition of the national security risks linked with laundering facilitation networks. Chainalysis highlighted measures taken by agencies, including the OFAC's designation of the Prince Group and FinCEN's ruling against Huione Group, along with advisories targeting Chinese money laundering networks.

Experts in the report have noted that cryptocurrency allows for the swift cross-border movement of illicit funds. Chainalysis concluded that curbing these networks necessitates coordinated efforts between the public and private sectors, combining innovations in blockchain analytics with intelligence sharing and targeted actions against the primary operators rather than just individual platforms.

The firm emphasized that the inherent transparency of on-chain data provides an outstanding level of visibility, but this advantage must be supported by robust global enforcement efforts and comprehensive collaboration.