The volume of money laundering through cryptocurrencies surged from $10 billion to $82 billion between 2020 and 2025. Chinese-language networks (CMLN) dominate this figure, accounting for 20%, according to Chainalysis.

In the next preview chapter of our 2026 Crypto Crime Report, we examine how Chinese-language money laundering networks processed $16.1 billion in illicit crypto funds in 2025 (about $44 million per day across 1,799+ active wallets).

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— Chainalysis (@chainalysis) January 27, 2026

"This significant growth reflects the increased availability and liquidity of digital assets, as well as a fundamental shift in how and through whom this laundering activity occurs," noted analysts from the firm.

They pointed out that networks operating through Telegram and other messaging apps have rapidly risen to prominence among other schemes for "whitening" illegal online income. Over five years, the influx into these structures increased 7,325 times compared to laundering through centralized crypto exchanges and 1,810 times compared to DeFi protocols.

This is largely attributed to the ability of CMLN to scale quickly, experts believe. In 2025, Chinese-language platforms processed $16.1 billion through 1,799 active wallets—approximately $44 million per day.

CMLN is closely linked to international financial flows and the need to circumvent sanctions. Part of the liquidity comes from capital outflow mechanisms from countries with strict control regulations, including China.

Infrastructure for Money Laundering

Chainalysis analysts described CMLN as integrated ecosystems comprising multiple links that facilitate transaction fragmentation, exchange functions, distribution, and integration of funds into legal channels.

The main components of these networks are Guarantee platforms like Huione and Xinbi. They provide marketplace services, offering participants the necessary infrastructure for asset deposits and trust mechanisms. These services do not directly engage in money laundering, allowing them to maintain the appearance of legitimate operations and promote themselves openly.

Chainalysis identified six main types of CMLN:

  • "launch point" brokers—typically rent bank accounts and wallets from individuals to facilitate asset flows to exchanges;
  • "money mule" convoys—conceal the origin of funds by moving them through a network of accounts, including cross-border transfers;
  • shadow OTC services—exchange assets without verifying the origin or client identity;
  • Black U platforms—purchase knowingly illegal cryptocurrency at a discount;
  • gambling providers—legalize funds through gambling;
  • mixers—operate similarly to well-known protocols like Tornado Cash or Blender.

It is worth noting that the total turnover of illegal crypto assets in 2025 was estimated by Chainalysis to be $154 billion, marking a 162% increase compared to the previous period.