Money laundering involving cryptocurrencies reached at least $82 billion last year, a sharp increase from $10 billion in 2020, according to blockchain research firm Chainalysis. This surge is partly attributed to the rapid growth of Chinese-speaking money-laundering networks. Chainalysis provides data, software, services, and research to government agencies, exchanges, financial institutions, and insurance and cybersecurity companies. They focus on cryptocurrency investigation and compliance solutions.
The fastest-growing segment within this illicit activity involves Chinese-language networks, which emerged during the pandemic. These networks processed approximately $40 million worth of cryptocurrency daily in 2025, highlighting the scale of the problem. Chainalysis reported identifying nearly 1,800 active wallets used by these networks, processing $16.1 billion in crypto in 2025. The research company acknowledges that its figures likely underestimate the true extent of money laundering.
Chainalysis employs machine learning and forensic experts to connect real-world activity to blockchain records, despite the difficulty in identifying individuals behind crypto wallets. These money-laundering networks employ techniques to avoid detection, including using ‘guarantee’ platforms, which act as escrow services and allow them to advertise.
Despite efforts to combat these activities, Chainalysis notes that the core networks persist and adapt by migrating to alternative channels when challenged. China has banned crypto trading and does not recognize digital tokens as legal tender or assets. In 2024, China prosecuted over 3,000 people involved in crypto-related money laundering.
