Crypto Shadows: 16.1B Laundered by Chinese Networks

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In the year when the screens glittered with numbers and the human breath seemed to grow thin, Chinese-language money laundering networks moved $16.1 billion in illicit crypto, a stark echo of a global underground economy that pretends to be modern and never quite finds the door to truth.

Telegram Channels as Laundering Hubs

These networks, known to insiders as CMLNs, moved an estimated $16.1 billion through the orderly chaos of cryptocurrency transactions in 2025. A study by Chainalysis-a name that sounds like a calculator with nerves-places them at nearly one-fifth of the world’s illicit crypto economy, which it tallies at more than $82 billion for the previous year. The numbers march on like soldiers in a parade, each badge a reminder that the disguise is occasionally convincing.

CMLNs operate largely through Telegram guarantee platforms, where launderers advertise services with photos of cash and client testimonials. These channels act as informal escrow systems, connecting vendors with customers while facilitating illicit deals. The blockchain analytics firm noted that beyond laundering, these platforms also host human trafficking operations and sales of Starlink satellite dishes to scam centers in Southeast Asia-a marketplace where integrity is the punchline and the joke ends in tragedy.

Andrew Fierman, Head of National Security Intelligence at Chainalysis, said the networks serve both organized crime groups and sanctioned state actors.

“We’ve seen everything from North Korean money and DPRK-related hacks moving through these channels to a wide range of other illicit activity,” Fierman told CNBC.

Criminology professor Mark Button of the University of Portsmouth framed the enormity in a lens both cautious and weary:

“These are very large, well-resourced organizations. This is not like a few criminals operating out of a back room flat.”

According to CNBC, the report outlines six laundering techniques, with a heavy drift toward stablecoins such as USDT and USDC. Fierman explained that criminals favor stablecoins for their liquidity, anonymity, and a certain forgiving volatility-comfort for those who prefer their crime to be tidy and placid.

Also read: AI Phishing, Supply Chains, and $3.5B Lost – Crypto’s Brutal 2025

Casinos and Crime Fronts

Button notes that many groups launder funds through casinos, inflating revenue figures to disguise the true proceeds of crime. A 2024 UN report highlighted Southeast Asia’s growing role as a hub for both licensed and unlicensed casinos tied to organized crime-a carnival of vice where the masked faces change but the tune remains the same.

While most networks communicate in Mandarin, many transactions originate in Cambodia and Myanmar, where syndicates run elaborate scam centers. China, which cracked down on cryptocurrency trading in 2021, has aggressively pursued scams. Recently, state media reported that 11 members of a Myanmar-based syndicate were executed on charges including homicide, fraud, and illegal casino operations.

Still, weaker laws and corruption in Southeast Asia allow Chinese groups to relocate and continue operations. Chainalysis estimated that CMLNs laundered about $44 million per day in 2025. Despite enforcement efforts, Fierman warned the networks remain highly adaptive:

“This is how illicit actors operate. They evolve, and once one gets detected, they hop to another avenue.”

FAQ 💡

  • What are CMLNs? Chinese-language money laundering networks (CMLNs) moved $16.1B in illicit crypto in 2025, nearly 20% of the global illicit volume.
  • Where do they operate? Most activity runs through Telegram escrow channels, with hubs in Cambodia and Myanmar serving Southeast Asia scams.
  • Who uses these networks? Chainalysis says organized crime groups and sanctioned state actors, including DPRK-linked hackers, rely on CMLNs.
  • How do they launder funds? Criminals favor stablecoins like USDT/USDC and casinos in Southeast Asia to disguise proceeds and preserve value.

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2026-02-05 06:27