Cryptocurrency Money Laundering Surges
In 2022, illicit money laundering linked to cryptocurrencies reached at least $82 billion, a significant increase from $10 billion in 2020, according to blockchain researchers. This rise is largely attributed to the rapid expansion of Chinese-speaking criminal organizations.
Chinese money laundering networks stand out as the fastest-growing, having emerged during the pandemic. These groups reportedly processed nearly $40 million in cryptocurrencies daily in 2025, as noted in a report by Chainalysis, a US-based research firm.
While blockchain technology keeps a record of wallet addresses involved in transactions, identifying the individuals behind these wallets remains a challenge. Chainalysis suggests that the estimated figures could be conservative; they found around 1,800 active wallets linked to Chinese networks involved in processing $16.1 billion worth of cryptocurrencies in 2025.
A representative from Chainalysis refrained from disclosing specific details about their research methods but mentioned that the company utilizes machine learning and forensic techniques to relate real-world actions to blockchain data.
In China, cryptocurrency trading is prohibited, and digital tokens hold no legal status as tender or assets. The Chinese government has charged 3,032 individuals with cryptocurrency-related money laundering offenses in 2024, as confirmed by the country’s chief prosecutor.
Authorities worldwide have consistently raised concerns over cryptocurrencies’ potential use in criminal activity, as they aren’t subjected to the same stringent regulations as traditional financial systems. However, experts argue that this is merely one of many avenues through which criminals can move money.
Coincidentally, Chainalysis points out that methods used by crypto money laundering networks to evade detection include relying on “guaranteed” platforms that offer escrow services and allow these criminals to market their services explicitly.
Chainalysis further explains that “Chinese-language guarantee platforms, funds transfer services, and related financial crime networks expose an intricate and adaptive ecosystem that persists despite attempts by law enforcement.” They added that while actions against these warranty services can have severe impacts, the core network usually finds ways to continue operating, often shifting to different channels if necessary.
