Key Highlights
- A recent Chainalysis report shows that global crypto laundering hit $82 billion in 2025, with Chinese networks (CMLNs) driving 20% of this figure.
- Fast, automated swaps, and money mules let criminals move stolen crypto in minutes, making detection extremely tricky.
- Despite sanctions, these networks adapt instantly by migrating to Telegram, using the app as a “darknet” operational base.
Crypto money laundering didn’t just grow in 2025; it professionalized. Illicit flows reached at least $82 billion, up sharply from $10 billion in 2020. U.S.-based blockchain research firm Chainalysis’ findings show that this growth is largely driven by Chinese-language money laundering networks (CMLNs).
According to the report, these networks appeared during the pandemic and now move nearly $44 million in crypto every day. The engine behind this explosion is specific: Chinese-language money laundering networks (CMLNs), who handle about 20% of all known crypto laundering.
Researchers found that they often work alongside offline criminal schemes, like “pig butchering” scams, while avoiding big exchanges. As a result, authorities find it harder to track these operations because much of the money moves through Telegram, which offers both trust and secrecy.
CMLN operations and rapid growth
Chainalysis found over 1,799 active wallets linked to CMLNs in 2025, up from just a few years ago. They move money on a massive scale, with some services handling $1 billion in just a few months.
For instance, Black U services reached that milestone in only 236 days, while over-the-counter (OTC) services took 1,136 days. Black U refers to “tainted” crypto known to be stolen or linked to scams. Because these tokens risk being frozen, they are sold at a discount. Altogether, these networks move around $44 million every day, showing how organized and well-funded they have become.
Experts say this growth is tied to China’s strict capital controls. Tom Keatinge, Director at the Centre for Finance & Security, noted, “Wealthy individuals seeking to move money out of China provide liquidity needed to service organized crime groups in the West.”
Similarly, Chris Urben of Nardello & Co explained that crypto is replacing old informal transfer systems, making it faster and easier to move money across borders without drawing attention.
The backbone of these networks: Guarantee platforms
Guarantee platforms form the backbone of CMLNs. Platforms like Huione and Xinbi work like marketplaces and escrow services, helping connect buyers and sellers without directly handling the laundering itself. Vendors build their reputations and advertise service quality, which creates a kind of accountability within this underground system.
These platforms support a range of services, from money mules and informal trading (OTC) to Black U platforms, peer-to-peer services, online gambling, and crypto mixing. Moreover, they link easily with offline operations, allowing money to move quickly and efficiently across borders.
Running point brokers and money mules are key players in the process of money transfer by these criminal networks. Running points enable criminals to use bank accounts and/or wallets to launder their stolen money. Money mules help launder the money by moving it through several accounts to conceal its origin. Moreover, online gambling sites and mixing services help funnel stolen funds back into the financial system.
In short, these networks follow the same basic money laundering steps—breaking up, moving, and merging funds—but now do it all using crypto.
Automation and efficiency in laundering
The automated tools also make the laundering process faster. The Black U services can move large amounts of money in less than two minutes, while the gambling sites move huge amounts of money on a daily basis.
The money mules are slower but are used for the largest transactions. The ads are always about the speed, secrecy, and reliability of the services, making sure the large amounts of money are moved for the high-end clients.
Global implications and enforcement
Chinese-language money laundering networks show just how hard it is to regulate crypto worldwide. Authorities in the U.S. and the UK have sanctioned groups like Huione and Prince Group, and FinCEN has warned about these networks.
However, they adapt quickly, simply moving to new platforms when disrupted. Keatinge stressed, “There is a chasm in most countries between the capabilities of criminals and law enforcement when it comes to crypto use.” Stopping them effectively requires countries to work together, using blockchain analysis and human intelligence to track and dismantle these networks.
Also Read: Accused $40M Govt. Crypto Thief ‘Lick’ Launches Memecoin on Solana
