Key Highlights
- Crypto transactions tied to suspected human trafficking jumped 85% from 2024 to 2025, reaching hundreds of millions of dollars.
- Cambodia and Myanmar compounds drive much of the activity, with funds flowing in from the U.S., Brazil, Europe, Australia, and elsewhere via Telegram escort services, labor recruiters, prostitution networks, and CSAM vendors.
- Crypto’s pseudonymity enables fast, borderless illicit payments but its public ledger aids enable tracing, with criminals now shifting to alternative chains and no-KYC services.
The latest findings reveal that cryptocurrency transactions linked to suspected human trafficking operations spiked by 85% from 2024 to 2025. The amount has now reached hundreds of millions of dollars with the growing popularity of crypto as a payment and investment vehicle across the globe.
The findings are part of the Chainalysis’ 2026 Crypto Crime Report, released on February 12, painting a grim picture of how cryptocurrencies are fueling exploitation networks. While the transparency feature of blockchain offers law enforcement a fighting chance to trace funds, the sheer volume underscores a growing challenge for regulators and investigators worldwide.
The report highlights how cryptocurrency’s borderless and pseudonymity nature enables quick payments without traditional banking oversight. Chainalysis tracked inflows to four main categories of illicit services, including international escorts, labor placement agents, prostitution networks, and vendors of child sexual abuse material (CSAM).
These operations often overlap with broader criminal ecosystems, including scam compounds and money laundering rings tied to Chinese-language networks on platforms like Telegram. “We’re seeing a conservative estimate here,” the report notes, suggesting the actual scale could be far larger due to undetected activities.
The Southeast asian hub and global reach
Chainalysis noted that much of the tracked activity stems from Cambodia and Myanmar, where sprawling compounds force victims into labor for online scams or sexual exploitation. It also points to Telegram-based “international escort” services as a key driver, with ads featuring tiered pricing from $420 per hour to over $1,100 for extended arrangements.
These services saw nearly half of their crypto transfers exceeding $10,000, indicating large-scale, organized operations.
Another focal point is labor placement agents that lure workers with false job promises only to trap them in forced labor. Payments here typically range from $1,000 to $10,000, often funneled through “guarantee platforms” that act as escrow services for illicit deals.
The report links these to groups like the “Fully Light Group,” previously flagged by the United Nations Office on Drugs and Crime (UNODC) for involvement in pig-butchering scams. These types involve fraudulent investment schemes that exploit victims emotionally and financially.
Meanwhile, another significant factor of prostitution networks handled mid-sized transactions between $1,000 and $10,000, blending into online gambling and casino ecosystems. But the most disturbing trend involves CSAM vendors, who have shifted to alternative blockchain networks and no-KYC exchangers.
One dark website alone raked in over $530,000 since mid-2022 using thousands of wallet addresses, eclipsing infamous cases like the 2019 “Welcome to Video” bust.
Geographically, the money flows in from everywhere: the Americas (led by Brazil and the U.S.), Europe (including the UK and Spain), and Australia. This global customer base shows how Southeast Asian hubs are exporting exploitation worldwide with crypto bridging the gaps.
Law enforcement wins and the path forward
Despite the uptick, 2025 brought some victories. U.S. authorities ramped up arrests of CSAM consumers, and international takedowns like the “KidFlix” platform, which boasted nearly two million users disrupted major networks. The Internet Watch Foundation reported a 7% rise in CSAM incidents, totaling 312,030, many hosted on U.S. servers that accept crypto payments while masquerading as legitimate sites.
Chainalysis emphasizes blockchain’s double-edged sword: while it enables crime, its public ledger allows for unprecedented tracing. “Unlike cash, crypto leaves a trail,” the crypto research firm states, advocating for better monitoring of red flags like large payments to labor recruiters.
Also read: South Korean Police Loses 22 Bitcoin From Custody: Phishing or Theft?
