Cryptocurrency money laundering has expanded dramatically over the past five years, with Chinese-language networks emerging as a central pillar of the global shadow economy, according to new research from blockchain analytics firm Chainalysis.
The report estimates that more than $82 billion flowed through on-chain laundering channels in 2025, up from approximately $10 billion in 2020. Chainalysis attributes the increase not only to the growing liquidity of crypto markets but also to the professionalization of laundering services that operate openly through messaging platforms and blockchains.
Chinese language money laundering networks (CMLN) now account for around 20% of known laundering activity, the firm said. Entries to these networks have grown thousands of times faster than those to centralized exchanges or decentralized financial protocols since 2020, as criminals increasingly avoid places where funds can be frozen.
Chainalysis identified at least $16.1 billion processed by CMLN in 2025 alone, spread across 1,800 active wallets and six major service types. These range from “point of execution” brokers that provide initial access to bank accounts and exchange wallets, to sprawling money mule networks, informal OTC counters, and so-called “Black U” services that openly trade tainted cryptocurrencies at a discount.
At the center of the ecosystem are Telegram-based “assurance platforms,” which serve as escrow and reputation centers connecting buyers and sellers of laundry services. Even when individual channels are disrupted, suppliers quickly migrate to other channels, keeping operations largely intact.
The speed and scale of these networks suggest deep links to off-chain criminal organizations, including fraudulent operations and cybercrime networks. While recent sanctions and advisories have drawn increased scrutiny, Chainalysis said the findings highlight how cryptocurrency money laundering has evolved into a global and resilient service industry that is quickly adapting to law enforcement pressure.
Read more: Cryptoanalysis firm Chainalysis says AI and phishing crypto scams stole $17 billion last year
