Money launderers received at least $82 billion in cryptocurrency last year, up sharply from $10 billion in 2020, driven in part by the rapid growth of Chinese-speaking groups, blockchain researchers reported Tuesday.
The fastest-growing category has been Chinese-language money laundering networks, which emerged during the pandemic and processed nearly $40 million in cryptocurrencies a day in 2025, according to a report by US blockchain research firm Chainalysis.
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Blockchains create a record of wallet addresses involved in cryptocurrency transactions, but identifying who is behind them is difficult.
However, Chainalysis claimed to have identified nearly 1,800 active wallets used by Chinese-language money laundering networks to process $16.1 billion worth of cryptocurrencies in 2025, and that its numbers were likely an underestimate.
A spokesperson for Chainalysis declined to detail the company’s methodology, but directed Reuters to its website, which indicated it connects real-world activity to blockchain records using machine learning and forensic experts.
Cryptocurrency trading is prohibited in China and digital tokens are not recognized as legal tender or assets there. In 2024, China sued 3,032 people involved in cryptocurrency-related money laundering, the country’s top prosecutor said.
Regulators and authorities around the world have been warning for years about the role of cryptocurrencies in crime, as they are generally subject to less specific regulation than conventional finance. Still, experts say it’s just one of many ways criminals transfer funds.
Techniques by cryptocurrency money laundering networks to avoid detection include the use of “escrow” platforms, which offer escrow services and allow money launderers to advertise their services, according to Chainalysis.
“Chinese collateral platforms, money movement services, and associated financial crime networks reveal a complex and resilient ecosystem that continues to adapt despite enforcement efforts,” Chainalysis said.
“As with other types of illicit on-chain activity, actions against collateral services can be disruptive, but core networks persist and migrate to alternative channels when they are affected.”
With information from Reuterss
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