Crypto is playing a growing role in human trafficking networks, report shows
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Cryptocurrency payments to suspected human trafficking organizations increased by 85% in 2025, with hundreds of millions of transactions tracked on public blockchains, according to a new report by Chainalytics.
The US-based blockchain analysis firm said much of the activity was linked to a sprawling criminal ecosystem of fraud, illegal online gambling operations and illegal online gambling operations in Southeast Asia. Chinese money laundering networks Operate in harmony.
The crypto tracker said traffickers’ crypto activities largely fall into three categories: International escort and prostitution services; labor placement agencies and fraudulent compounds; and dealers of child sexual exploitation material (CSAM).
While data on the blockchain shows most services are concentrated in Southeast Asia, customers send payments from across North and South America, Europe and Australia, highlighting the global reach of the operations.
Chainalytics also found that cybercriminals are increasingly relying on messaging platforms such as Telegram to advertise their services, recruit victims and coordinate payments.
“There is a broader shift from legacy darknet forums to messaging apps and semi-open Telegram ecosystems, which, combined with crypto, allows these networks to scale faster, run ‘customer services,’ and move money globally with much less friction,” said Chainalytics intelligence analyst Tom McLouth.
The company added that the transparency of public blockchains also provides what it calls “unprecedented visibility” into criminal financial flows that blockchain trackers rely on to disrupt activity.
“The key takeaway is that the actual financial scale is large, with crypto transactions worth at least hundreds of millions of US dollars, and the physical damage is far greater than any dollar figure,” McLouth said.
Escort and prostitution networks
Blockchain activity shows that there are highly organized networks behind many transactions.
While some escort services and sex work are conducted legally, the report notes that potential trafficking operations can be identified through different financial behaviors.
McLouth said dubious networks in particular are increasingly relying on stablecoins and Chinese-speaking money laundering groups to quickly withdraw funds.
These money laundering networks operate primarily through Chinese-language Telegram channels to help criminals “clean up” illicit funds by moving them through cryptocurrency, with an estimated $16.1 billion in illicit crypto flows by 2025.
Data showed that crypto-related international escort services also accounted for a significant portion of high-value transfers tracked by Chainalytics, with nearly half of transactions exceeding $10,000.
Listings reviewed by researchers advertised cross-border travel packages, multi-day “friendship” services and tiered pricing structures, with VIP packages priced above $30,000.
The size and consistency of these transfers, as well as repeated payment patterns between clusters of wallets, indicate professionalized operations rather than isolated individuals, Chainalytics said.
Crypto payments to suspected prostitution networks showed a smaller set of transactions unlike escort services, mostly between $1,000 and $10,000. But the data was consistent with organized groups, according to Chainalytics.
Recruiters and fraudulent compounds
Another important category included so-called “job placement agents” who recruit individuals to scam sites, often located in Southeast Asia, that are known for running crypto-based schemes.
The report noted that recruitment fees typically range from $1,000 to $10,000 in cryptocurrency and match prices advertised on Telegram channels.
Examples cited in the report include posts seeking “customer service” or “data entry” workers for jobs in Cambodia or Myanmar, promising high monthly salaries and covering travel expenses.
Once recruited, victims were allegedly forced to commit romance scams, fake cryptocurrency investment schemes, and other online scams targeting victims overseas.
In some Telegram conversations analyzed by Chainalytics, recruiters discussed moving workers across borders, forging documents and coordinating payments to intermediaries.
The firm also identified links between recruitment channels and wallets previously associated with illegal gambling platforms and money laundering services; This suggested that the smuggling activity was intertwined with wider criminal organizations.
The scale of these compounds was revealed last year when the US Department of Justice seized $15 billion worth of Bitcoin from a major Cambodian fraud center running romance scams.
“Since late 2025 we have seen increased enforcement of parts of this ecosystem, particularly fraudulent combinations, but underlying sexual exploitation and human trafficking networks can often continue to operate through alternative infrastructure, both physical and digital,” McLouth said.
CSAM vendors
Chainalytics also tracked networks involved in child sexual exploitation material (CSAM) that operated under different payment structures but exhibited similarly organized financial models.
Nearly half of CSAM-related crypto transactions were under $100; This reflects subscription-based models and low per-user pricing in private chat groups or encrypted file sharing channels.
Chainalytics observed that these funds are shifting from mainstream cryptocurrencies to privacy-focused assets: Monero as well as instant exchange services that do not require authentication.
The report also documented overlaps between CSAM subscription services and “sadistic online extremism” communities.
“These [sadistic online extremism] The report stated that the groups specifically target and manipulate minors through complex sextortion schemes, the resulting content is monetized through cryptocurrency payments, and the cycles of exploitation continue.
In July 2025, Chainalation said it helped identify One of the largest CSAM websites operating on the dark web It follows the lead of UK law enforcement.
More than 5,800 cryptocurrency addresses were used in this single operation, generating more than $530,000 in revenue since July 2022.
“Overall, as cryptocurrency adoption increases, so will its use for both illicit and legitimate purposes,” McLouth said. “In the near term, I do not expect the use of crypto in smuggling-related activities to disappear, and in fact I expect it to continue to grow as enforcement improves.”
