Chinese-language money laundering networks (CMLNs) have funneled $16.1 billion in illicit cryptocurrency transactions throughout 2025. Chainalysis reported this fraud in its newly released 2026 Crypto Crime Report. Processing an average of $44 million per day, these Chinese syndicates now account for roughly 20% of all global illicit cryptocurrency flows. Chainalysis views this as a seminal shift in banking-related crimes where criminals have now moved from traditional banking sectors to leverage the high-speed, borderless efficiency of stablecoins.
The report further states that since 2020, illicit inflows to identified Chinese networks have grown 7,325 times faster than those to centralized exchanges. “Very rapidly, these networks have developed into multi-billion dollar cross-border operations,” noted Tom Keatinge, director at the Centre for Finance & Security at the Royal United Services Institute. “They offer value-for-money laundering services that suit the needs of transnational organized crime groups from Europe to North America,” he continued.
Key Statistics and Major Trends
The 2026 Crypto Crime Report, released by Chainalysis, has reported major fraud in the decentralized finance sector. As per the report, illicit addresses received at least $154 billion in 2025, up 162% year-over-year, with sanctioned entities seeing a 694% increase in funds. Stablecoins made up 84% of illicit transaction volume. North Korean hackers stole a record $2 billion, while scams are projected to exceed $17 billion amid AI-driven schemes.
The report also unveiled certain trends that have recently emerged. Chinese money laundering networks (CMLNs) emerged as a dominant force, funneling massive volumes like the $16.1 billion mentioned here. Russian A7A5 tokens enabled $93.3 billion in sanctions evasion, signaling the growing reliance of nation-states on crypto. The report concludes that crypto crimes have become more professional, with services like laundering-as-a-service linking fraud, trafficking, and hacks across East Asia.
“Guarantee Platforms” that Serve as Escrow Hubs
At the heart of this $16.1 billion ecosystem are “guarantee platforms,” which refer to platforms like Cambodia-based Huione Group and Xinbi that act as underground marketplaces that function as escrow hubs. Using Telegram as their primary storefront, these platforms connect laundering vendors with “customers” (scammers and drug cartels). They provide a layer of trust in an otherwise lawless market, which adds to their popularity.
The United Nations Office on Drugs and Crime (UNODC) has identified these networks as the primary financial engine for perpetrating such crimes. In 2025, Chinese networks were responsible for laundering at least 10% of all funds stolen in these global romance-investment scams, according to Chainalysis.
Law Enforcement Strikes Back
The massive scale of fraud operations has invited global regulatory scrutiny with the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioning the Prince Group and its chairman, Chinese national Chen Zhi, for allegedly overseeing a cyber-scam empire and laundering billions.
Following his arrest and extradition to China in early 2026, investigators discovered that Zhi’s network utilized more than 100 shell companies to mask their crypto footprints. Similarly, the sentencing of Jingliang Su, a key player in a $36.9 million laundering scheme, in January 2026 shows that Western law enforcement is increasingly successful at penetrating the “inner circle” of these networks.
