BEARISH 📉 : Chinese crypto laundering networks drive illicit funds to $82 billion

Blockchain analytics firm Chainalysis has reported a significant rise in crypto-based money laundering, particularly involving Chinese-language networks (CMLNs). These networks are emerging as a serious threat within the digital asset ecosystem.

Key Findings

Illicit on-chain money laundering activity has increased from an estimated $10 billion in 2020 to over $82 billion by 2025.
CMLNs accounted for approximately 20% of illicit crypto laundering activity in 2025.
These networks have grown rapidly, with inflows increasing 7,325 times faster than those to centralized exchanges and significantly outpacing other laundering channels like DeFi platforms.
Telegram-based CMLNs now represent a large share of global laundering activity.

Operational Characteristics

CMLNs operate across multiple platforms using complex systems with industrial-level processing capacity.
In 2025, six distinct service types within the CMLN ecosystem processed $16.1 billion in illicit inflows.
The number of active entities has increased to over 1,799 on-chain wallets in 2025.

Global Impact

Chinese money laundering networks have evolved into multi-billion-dollar cross-border operations, serving organized crime groups in Europe and North America.
These groups are increasingly using cryptocurrencies for faster and more discreet fund transfers, moving away from traditional underground banking methods.