Cryptocurrency money laundering has grown significantly over the past five years, with Chinese-language networks becoming a central pillar of the global underground economy, according to a new study from blockchain analytics firm Chainalysis.
The report estimates that more than $82 billion passed through on-chain laundering channels in 2025, up from around $10 billion in 2020. Chainalysis attributes this increase not only to the growing liquidity of crypto markets, but also to the professionalization of laundering services that operate openly on messaging platforms and blockchains.
Chinese language money laundering networks (CMLNs) now account for approximately 20% of known laundering activity, the company said. Flows to these networks have grown thousands of times faster than those to centralized exchanges or decentralized financial protocols since 2020, as criminals increasingly avoid places where funds can be frozen.
Chainalysis has identified at least $16.1 billion processed by CMLNs in 2025 alone, spread across 1,800 active wallets and six core service types. These range from “gateway” brokers that provide initial access to bank accounts and exchange wallets, to sprawling money mule networks, informal over-the-counter desks, and so-called “Black U” services that openly trade corrupt cryptocurrencies at a discount.
At the center of the ecosystem are Telegram-based “collateralization platforms,” which serve as repository and reputation hubs connecting buyers and sellers of laundering services. Even when individual channels are disrupted, suppliers quickly migrate to other channels, keeping operations largely intact.
The speed and scale of these networks suggest deep connections to off-chain criminal organizations, including fraudulent operations and cybercrime networks. While recent sanctions and advisories have prompted increased scrutiny, Chainalysis said the findings highlight how cryptocurrency laundering has evolved into a resilient global services sector that is quickly adapting to the pressure.
Read more: Cryptocurrency analytics firm Chainalysis says AI impersonation and crypto scams stole $17 billion last year
