Chinese-language organized crime networks moved an estimated $16.1 billion in illegal funds through cryptocurrency in 2025, according to a new industry report. This activity made up around 20% of the total global crypto crime market, showing how large and well-organized these networks have become.
The overall value of illicit cryptocurrency transactions worldwide was estimated at more than $82 billion in 2025. A significant share of this was linked to networks that mainly communicate in Mandarin and operate across borders, especially in the Asia-Pacific region.
How the Crypto Laundering Networks Operate
These Chinese-language money laundering networks use cryptocurrency because it allows money to be moved quickly and quietly. Crypto does not rely on traditional banks, making it harder for authorities to freeze or block funds.
Most of the coordination happens on the messaging app Telegram. On the platform, laundering services are openly advertised in chat groups and channels. These advertisements often include photos of large amounts of cash and user reviews to show reliability and trust.
A major role is played by Telegram-based “guarantee” platforms. These platforms work like informal marketplaces. They connect people who want to launder money with service providers. While they do not directly control transactions, they help arrange deals and reduce risks between criminals.
The report explains that these platforms are central to how illegal deals are set up. They act as meeting points for launderers, criminal groups, and even sanctioned actors. Beyond money laundering, the same channels are also used for other illegal activities.
These include online scams, human trafficking, illegal gambling, and the sale of satellite internet equipment used in scam centers in Southeast Asia. The wide range of crimes shows how deeply connected these platforms are to organized crime.
Why Stablecoins and Casinos Are Used
Criminal groups prefer stablecoins such as USDT and USDC. These digital currencies are designed to keep a steady value, often tied to the U.S. dollar. This helps criminals avoid losses caused by price swings seen in cryptocurrencies like Bitcoin or Ethereum.
Stablecoins also help reduce transaction costs. For criminals already paying fees to launder money, avoiding extra losses is important. Their stability makes them a practical tool for moving large amounts of illegal funds.
In addition to crypto, many organized crime groups also use legitimate-looking businesses to hide illegal money. Casinos are a common choice. Criminals may pass illegal funds through casinos and report inflated earnings to make the money appear clean.
Since at least 2022, Southeast Asia has seen growth in both licensed and unlicensed casinos linked to organized crime. These casinos are often connected to scam operations and money laundering activities.
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Southeast Asia as a Key Base of Operations
China has strict laws against money laundering and banned cryptocurrency trading in 2021. As enforcement increased, many Chinese criminal groups moved their operations abroad.
Countries such as Cambodia and Myanmar have become major bases for these networks. Weaker laws, limited oversight, and corruption in some areas allow criminal groups to operate more freely.
Although these networks use Chinese as their main language, many transactions now originate outside China. Scam centers in Southeast Asia generate large amounts of illegal income, which is then moved through crypto channels.
Authorities in the region have tried to crack down on these activities, including actions against scam syndicates. However, enforcement is difficult. These are large, well-funded organizations that operate across borders and adapt quickly when their methods are discovered.
The report estimates that these networks laundered around $44 million every day in 2025. Despite ongoing efforts to stop them, the networks continue to shift platforms and techniques, making detection and enforcement a constant challenge.