Key Notes
- Chinese-language money laundering networks now handle 20% of all known illicit crypto activity, operating through six distinct service types.
- Wealthy individuals circumventing China’s capital controls provide liquidity that services organized crime groups across Europe and North America.
- Authorities face challenges combating these resilient operations despite China’s 2021 crypto ban and prosecution of over 3,000 individuals in 2024.
Illicit cryptocurrency money laundering activity climbed to over $82 billion in 2025, marking an eightfold increase from $10 billion in 2020, according to blockchain analysis firm Chainalysis.
The considerable growth reflects increased accessibility and liquidity of cryptocurrencies, associated with significant changes in laundering operations. Chinese-language money laundering networks (CMLNs) have surged to become dominant players, processing $16.1 billion—approximately $44 million daily across more than 1,799 active wallets—and now account for roughly 20% of known illicit laundering activity, according to the firm’s report.
This represents growth 7,325 times faster than inflows to centralized exchanges since 2020.
A graphic showing the value of money laundering from different sources and how CMLN dominates | Source: Chainalysis
How CMLNs Operate: Six Service Types Fueling Illicit Transfers
Chainalysis identified six distinct service types within the CMLN ecosystem: running point brokers, money mules, informal over-the-counter desks, Black U services, gambling platforms, and money movement services.
Tom Keatinge, Director at Centre for Finance & Security at RUSI, told Chainalysis, “Very rapidly, these networks have developed into multi-billion dollar cross-border operations offering efficient, value-for-money laundering services that suit the needs of transnational organized crime groups across Europe and North America.”
The networks primarily exploit China’s capital controls, with wealthy individuals seeking to move money out of China providing the liquidity pool to service organized crime groups. Chris Urben, Managing Director at Nardello & Co, explained that “the biggest change in Chinese money laundering networks in recent years is a rapid transition to crypto from reliance on informal value transfer systems.”
Authorities Crack Down But Networks Prove Resilient
China officially banned cryptocurrency trading in 2021, yet underground banking operations persist. In 2024, Chinese authorities prosecuted 3,032 individuals linked to crypto-related money laundering cases. Earlier in January 2026, South Korean customs dismantled a $102 million crypto remittance ring that used WeChat Pay and Alipay to disguise illegal transfers, with a Chinese national in his thirties coordinating the network.
Meanwhile, Cambodia has become another focal point, with Chainalysis reporting over $49 billion in crypto transactions linked to Huione Guarantee, a platform within the Cambodian conglomerate that serves CMLN vendors.
According to Chainalysis, combating these operations, which are highly resilient and adaptable, requires coordinated public-private partnerships that combine law enforcement’s legal authorities with blockchain analytics expertise to increase the cost and risk of operating large-scale laundering services.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
José Rafael Peña Gholam is a cryptocurrency journalist and editor with 9 years of experience in the industry. He wrote at top outlets like CriptoNoticias, BeInCrypto, and CoinDesk. Specializing in Bitcoin, blockchain, and Web3, he creates news, analysis, and educational content for global audiences in both Spanish and English.
