Crypto Laundering Surges as Chinese Language Networks Drive Growth
Cryptocurrency linked money laundering surged to at least $82 billion globally in 2025, underscoring how illicit finance has scaled alongside the growth of digital assets despite years of regulatory warnings. Blockchain researchers say the sharp rise from roughly $10 billion in 2020 reflects increasingly professionalised networks that exploit the speed and pseudonymity of crypto transfers. A major driver has been the rapid expansion of Chinese language laundering groups, which processed large volumes of digital tokens last year even as crypto trading remains banned on the mainland. The figures highlight the gap between enforcement efforts and the evolving tactics of criminal networks, raising fresh questions for regulators trying to contain financial crime without stifling legitimate blockchain innovation.
Researchers at Chainalysis said Chinese language laundering networks were the fastest growing category, handling nearly $40 million worth of cryptocurrency per day in 2025. The firm identified close to 1,800 active wallets linked to these groups that processed more than $16 billion over the year, though it cautioned the true figure was likely higher. While blockchains create permanent transaction records, identifying the individuals behind wallet addresses remains difficult, giving organised groups room to operate across borders. Analysts say many of these networks emerged during the pandemic and have since matured into resilient ecosystems offering laundering services to a global clientele.
China’s role is particularly complex. Crypto trading is banned domestically and digital tokens are not recognised as legal assets, yet Chinese language networks have become central players in cross border laundering activity. Authorities have stepped up enforcement, with prosecutors saying thousands of people were sued in 2024 over crypto related money laundering. Despite this, researchers argue that bans alone have not eliminated demand, instead pushing activity offshore and into more opaque structures. Laundering networks increasingly rely on online escrow and so called guarantee platforms that allow them to advertise services and move funds while attempting to avoid detection. When specific platforms are disrupted, activity often migrates quickly to new channels.
The broader trend reinforces long standing concerns among regulators about crypto’s role in financial crime. While experts note that digital assets are only one of many tools criminals use to move money, the scale and growth rate are drawing attention as governments debate tougher oversight. The persistence of Chinese language networks suggests enforcement will need to be coordinated internationally and supported by more advanced analytics. For policymakers, the data highlights a dilemma: cracking down on illicit use without undermining legitimate blockchain applications that are increasingly embedded in global finance. As crypto markets mature, the battle between regulators and laundering networks is likely to intensify rather than fade.
