Chinese Gangs Laundered $16.1 Billion via Crypto in 2025

David Moore · 2026-02-02

A new report from blockchain analysis firm Chainalysis has revealed a staggering figure. Chinese-speaking criminal organizations laundered approximately $16.1 billion through cryptocurrency transactions in 2025. That's a massive chunk of the global problem. Think about it. That's about $44 million moving through the system every single day. The report states these networks handled around 20% of the world's dirty crypto transactions, which totaled a jaw-dropping $82 billion for the year. It's a scale that's hard to wrap your head around. ### The Telegram Connection So how are they doing it? According to Andrew Fierman, Chainalysis's Head of National Security Intelligence, these illegal networks run a lot of their business through the Telegram messaging app. It's become the platform of choice. Fierman explained that these platforms use Telegram to coordinate more than just money laundering. We're talking about human trafficking and even selling equipment like Starlink satellite gear that ends up fueling scam operations across Southeast Asia. It's a full-service criminal enterprise operating in plain sight.  ### Why Criminals Love Crypto You might wonder why crypto is so attractive to these groups. The Chainalysis executive broke it down simply. Their customers include sophisticated criminal networks and even government actors facing international sanctions. The preference comes down to a few key things. Cryptocurrency is relatively simple to exchange into cash. More importantly, it's less likely to get frozen by authorities compared to funds sitting in a traditional bank account. It offers a layer of perceived safety and fluidity that dirty money needs. There was a notable exception, of course. In October, the US Treasury managed to seize $15 billion in Bitcoin from alleged scam center kingpin Chen Zhi. But Fierman points out that most criminals aren't using Bitcoin for the big moves. They particularly favor stablecoins like USDT from Tether and USDC from Circle. Why? Because these digital assets "stay at a steady value" compared to the US dollar. They "don't swing wildly in price like Bitcoin or Ethereum." For moving large sums, predictability is everything. ### The Casino Connection This is where it gets particularly relevant for industry professionals. CNBC cited Professor of Criminology Mark Button, who made a blunt observation: "Casinos are a classic means to launder any criminal proceeds." Those in Southeast Asia have become a hotbed for these scam centers. Here's the twist. Many of the transactions conducted in Mandarin, the report found, don't actually originate in China. They come from outside the country, from casino scam centers in places like Cambodia and Myanmar. Button pointed out the reason for this geographic shift. China's intense crackdown on organized crime has pushed these networks to relocate. They set up shop where laws are looser and, frankly, where corruption is just part of doing business. - **Scale:** $16.1 billion laundered in a single year. - **Method:** Heavy use of Telegram and stablecoins for operations. - **Location:** Networks often based in Southeast Asian casino hubs. - **Reason:** Crypto offers liquidity and avoids traditional banking freezes. The report paints a clear picture of a sophisticated, adaptable underworld. They're using modern tools to facilitate age-old crimes, and the digital nature of cryptocurrency has given them a powerful new vehicle. For anyone in the gaming and finance space, understanding these flows isn't just academic—it's critical for navigating the integrity of the global system.