Chinese organized crime networks moved $16 billion in crypto in 2025, according to report
Amber Casino and its former fraud center, owned by Chinese businessman Chen Zhi, who was deported to China, are seen in Sihanoukville, Cambodia, on January 18, 2026.
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Chinese money laundering networks transferred an estimated $16.1 billion in illicit funds through cryptocurrency transactions in 2025, according to a report published Tuesday by blockchain data analysis firm Chainalysis.
These networks, known as CLMNs, accounted for roughly a fifth of the illicit cryptocurrency ecosystem in 2025, valuing Chainalytics at over $82 billion.
Criminal networks operate primarily through various channels and chat groups on the Telegram messaging platform, where launderers advertise their services to potential customers. According to the report, these postings often include images showing stacks of cash and public testimonials as evidence of liquidity and quality of service.
Known as “guarantee” platforms, these Telegram-based channels function as marketing hubs or unofficial escrow services that connect sellers with potential customers. Although the platforms do not control underlying transactions, Chainaliz said they are the main channels through which illicit deals are orchestrated.
Beyond money laundering, activities on these platforms include human trafficking and other criminal dealings, such as the sale of Starlink antennas used in Southeast Asian fraud hubs, according to Chainalytics Head of National Security Intelligence Andrew Fierman.
These are very large and well-resourced organizations. This isn’t like a few criminals operating out of a back room apartment.
Bookmark Button
professor of criminology at the University of Portsmouth
Potential customers also range from organized crime organizations to sanctioned state actors, Fierman said.
“We’ve seen everything from hacking of North Korean money and North Korea-related hacking to a lot of other illegal activities happening,” Fierman told CNBC.
Such Telegram-based platforms are common tools for illicit networks around the world, according to Mark Button, a criminology professor at the University of Portsmouth who has studied similar networks in India and West Africa.
The report identified six main techniques that Chinese money laundering networks use to launder funds, often relying on digital assets such as cryptocurrencies to secretly move funds.
According to Fierman, cryptocurrencies appeal to criminal actors because of their liquidity, convenience and relative anonymity, especially for those who want to avoid having their funds frozen on traditional financial platforms.
Stablecoins as below USDTPublished by Tether and owned by Circle US DollarThey are cryptocurrencies designed to maintain a fixed value relative to a specific asset; It is usually a fiat currency such as the US Dollar. Their lower volatility compared to cryptocurrencies Bitcoin or Ethereum It helps keep transaction costs low.
“If you’re engaging in illegal activity, the last thing you want to do is lose more money,” Fierman said. “You already have to pay for the laundering process… The last thing you want is to have a really bad week in Bitcoin and lose another 10% of your money.”
Casinos, crypto and crime
Button said many organized crime groups that use crypto-based money laundering services often also move their funds through seemingly legitimate companies.
“Casinos are a classic way to launder all forms of criminal proceeds,” he said, adding that it was common practice for criminal groups to launder illicit funds through inflated revenue figures.
According to the 2024 report, Southeast Asia has begun to become a hub for licensed and unlicensed casinos linked to organized crime since at least 2022. report By the United Nations Office on Drugs and Crime.
Fierman noted that while the Chainaliz study examined organized networks that use Mandarin as the main means of communication, many transactions originate outside of China. These include places such as Cambodia and Myanmar, where organized crime syndicates have been found to operate sophisticated fraud centres.
“China actually does a very good job of fighting these types of scams because they generally don’t like organized crime,” Button said.
On Thursday, Chinese state media Xinhua reported that 11 members of a Myanmar-based fraud syndicate were executed on charges of “premeditated murder, intentional injury, illegal detention, fraud and establishing a casino.”
China has strict laws on money laundering and ban on cryptocurrency trading Since 2021, there have been references to its use in organized crime.
As a result, according to Button, Chinese criminal groups frequently move into jurisdictions in Southeast Asia such as Cambodia and Myanmar; here weaker laws and corrupt local officials allow them to operate more freely.
While authorities have proactively sought to suppress these transnational criminal organizations, enforcement has been challenging due to the complexity of their operations and cross-border enforcement.
“These are very large, well-resourced organisations. This is not like a couple of criminals operating out of a backroom flat,” Button said.
Chainalysis estimates that these Chinese money laundering networks are laundering the equivalent of $44 million per day in 2025.
Despite efforts to crack down on such illicit trade, Fierman said many of these networks will continue to evade detection. “This is how illegal actors work. They evolve and when one is detected, they jump on another path.”
