The landscape of crypto money laundering is evolving rapidly. Data shows that centralized exchanges are being used less for illicit activity, while Chinese-language networks are now leading the on-chain laundering ecosystem.
According to recent reports of Chainalysis over $82 billion in illicit crypto funds were laundered in 2025, up from $10 billion in 2020. Chinese-language informal networks accounted for $16 billion, averaging $44 million per day. These networks, often operating via Telegram-based services, use money mules, informal OTC trading desks, and gambling platforms to mix and swap cryptocurrencies.
The shift from centralized exchanges is driven by stricter regulatory compliance and enhanced security measures, as platforms can now freeze suspicious funds. In contrast, informal networks offer more accessible and untraceable services, which have grown 7,325 times faster than centralized exchanges since 2020.
Experts emphasize that law enforcement must improve crypto investigation capabilities. Targeting both the operators and their advertising channels is critical to disrupting the flow of illicit funds. The increasing accessibility of cryptocurrencies has made crypto laundering more widespread, highlighting the urgent need for global collaboration and information sharing among authorities.
As the ecosystem evolves, understanding these Chinese-language laundering networks is key to curbing illicit crypto activity worldwide.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.