Chinese Crime Networks Implicated in Crypto Crimes Worth $16bn, Report Finds

Chinese crime networks have been linked to massive cryptocurrency crimes worth about $16 billion, according to a new report by blockchain analysis firm Chainalysis. The findings highlight how organized criminal groups are increasingly using digital currencies to move illegal money across borders while avoiding traditional banking systems.

The report shows that Chinese-language money laundering networks handled around $16.1 billion in illicit crypto transactions in 2025. This accounts for nearly one-fifth of all global crypto crime during that year, making these networks one of the most powerful forces in the illegal crypto economy. The scale of the operations shows that this is not small-time crime, but well-organized and well-funded activity.

Most of these networks operate through the messaging app Telegram. They use special channels known as “guarantee platforms” where money launderers openly advertise their services. These platforms act as meeting points where criminals, brokers, and clients connect and arrange deals. Although the platforms do not directly handle the money, they play a key role in organizing and promoting illegal transactions.

The report explains that these networks are involved in more than just money laundering. They are also linked to human trafficking, online scam centers, and the sale of illegal equipment used in fraud operations. Some clients include international crime groups and even sanctioned state-linked actors. This shows how deeply connected these networks are within the global criminal system.

Cryptocurrency is attractive to criminals because it is fast, easy to move, and harder to track than traditional money. Stablecoins such as USDT and USDC are especially popular. Unlike Bitcoin or Ethereum, stablecoins do not change value much, which helps criminals avoid losses while moving large sums of money.

Many of these crime groups also use real businesses to hide illegal profits. Casinos are one of the most common tools used to make dirty money look clean. In recent years, Southeast Asia has become a major base for these operations. Countries such as Cambodia and Myanmar host both legal and illegal casinos, as well as large scam centers tied to organized crime.

China’s strict laws against money laundering and its ban on cryptocurrency trading have pushed many criminal groups to move their operations abroad. Weaker laws and corruption in parts of Southeast Asia make it easier for these networks to operate without strong interference from authorities.

Despite ongoing crackdowns, the report notes that enforcement remains difficult. These networks are large, flexible, and quick to adapt. Chainalysis estimates they laundered about $44 million every day in 2025. As authorities close one route, criminals often shift to another, showing that crypto crime remains a growing global challenge.

For crypto firms like Marathon Digital Holdings Inc. (NASDAQ: MARA), the threat of cyber criminals is a major concern and they are constantly implementing improvements to their cybersecurity measures to thwart any attempts by criminals to access their systems.

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