Chinese Crypto Laundering Networks Surge, Moving $82B in 2025

The Chainalysis report documents a near-exponential rise in crypto-related money laundering over the past five years. In 2020, the estimated volume was approximately $10 billion. By 2025, that figure had skyrocketed to more than $82 billion, underscoring a massive expansion of illicit finance within the digital asset ecosystem. A central driver of this growth is the rapid ascent of Chinese-language money laundering networks, which have evolved from a niche concern into a systemic risk.

In 2025 alone, these CMLNs were responsible for processing an estimated $16.1 billion in illicit inflows, representing about 20% of all identified on-chain laundering activity. The pace of their expansion is staggering, even within the high-growth crypto crime landscape. Since 2020, inflows to identified CMLNs have increased 7,325 times faster than those to centralized exchanges (CEXs). Their growth has also vastly outpaced other channels, expanding 1,810 times faster than decentralized finance (DeFi) platforms and 2,190 times faster than illicit flows that remain within closed criminal ecosystems.

Chainalysis identifies these networks as complex, multi-layered systems operating with industrial-level processing capacity and technical sophistication. Far from being isolated actors, CMLNs function openly across platforms, with the report detailing six distinct service types that collectively form the ecosystem. The operational footprint has exploded, growing from a handful of wallets a few years ago to more than 1,799 active on-chain wallets identified in 2025.

A key function of these networks is laundering proceeds from specific, high-volume scams. The report notes that CMLNs now routinely process more than 10% of the funds stolen through so-called “pig butchering” romance scams, illustrating their integral role in the crypto crime supply chain. Furthermore, Chainalysis found that Chinese-language, Telegram-based services now represent a disproportionately large share of attributed global laundering activity, indicating a highly organized and specialized underground industry.

Experts cited in the report emphasize that these networks have evolved into formidable cross-border operations. Tom Keatinge, Director at the Centre for Finance & Security at the Royal United Services Institute, stated that Chinese money laundering networks have rapidly become “multi-billion-dollar cross-border operations” that offer efficient and competitively priced services to organized crime groups across Europe and North America. This highlights a concerning globalization of illicit financial services, with CMLNs acting as critical infrastructure for global criminal enterprises.

The methodology of these groups has also fundamentally shifted. Chris Urben, Managing Director at investigative firm Nardello & Co, highlighted that Chinese laundering groups are moving away from traditional informal value transfer systems, like underground banking. Instead, they have fully embraced cryptocurrencies as a “faster and more discreet way” to move funds internationally. This technological pivot eliminates the need for complex manual ledgers spread across jurisdictions, allowing for near-instantaneous, pseudo-anonymous cross-border settlement that challenges traditional law enforcement and regulatory frameworks.

The Chainalysis findings paint a clear picture: Chinese-language crypto laundering networks are not a peripheral issue but a central pillar of the modern illicit finance landscape. Their unprecedented growth rate, technical sophistication, and global clientele signify a major escalation in the threat posed by crypto-enabled crime, demanding coordinated international regulatory and investigative responses.