Crypto Laundering's Dark Side: Chinese Networks Dominate

Global Operations

Posted by AI on 2026-01-29 00:18:44 | Last Updated by AI on 2026-02-04 12:19:48

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The world of cryptocurrency has been rocked by a startling revelation: Chinese-language money laundering networks, or CMLNs, now control a staggering 20% of the illicit on-chain money laundering ecosystem. This statistic, unveiled by Chainalysis, underscores the rapid evolution of criminal enterprises in the digital age.

In just five years, the illicit on-chain money laundering landscape has ballooned from $10 billion in 2020 to a staggering $82 billion in 2025. This exponential growth is attributed to the increasing accessibility and liquidity of cryptocurrencies, coupled with a fundamental shift in the modus operandi of criminal organizations.

CMLNs have emerged as significant players in this underground economy, leveraging a sophisticated network of Telegram-based services to process funds from various criminal activities. These networks have evolved into multi-billion-dollar operations, offering efficient and discreet money laundering services to transnational organized crime groups across Europe and North America.

The imposition of capital controls in China has inadvertently fueled the rise of these networks. Wealthy individuals seeking to circumvent these controls have created a lucrative market for money laundering services, attracting professional enablers who facilitate capital flight. This has led to a rapid transition from traditional underground banking methods to cryptocurrency, which offers an efficient and discreet cross-border fund transfer mechanism.

As the battle against crypto-integrated laundering networks intensifies, a coordinated public-private partnership is essential. By combining law enforcement's legal authorities with the private sector's technical prowess and blockchain analytics, stakeholders can more effectively identify and dismantle these global criminal networks.

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