The number of cases involving cryptocurrency and on-chain based money laundering has increased recently, growing from $10 billion in 2020 to over $82 billion in 2025.
The launderers have moved from relying on the normal centralized exchange platforms to more decentralized channels. This shift comes due to the tighter compliance measures that many exchanges have put in place.
Source: Chainlysis
One of the most significant developments in this new ‘laundering ecosystem’ is the rise in the number of Chinese-language money laundering networks.
In 2025 alone, these networks accounted for almost 20% of the total known on-chain laundering activities, marking a significant increase in their influence within the global crypto crime landscape.
Source: Chainalysis
Data also shows that these networks have become embedded in a wide range of criminal operations as they also make up more than 10% of the funds stolen through “pig butchering” scams. Another category of fraud schemes that target victims through social engineering and relationship-based manipulations.
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The Rise of Large Scale Crypto Laundering Networks
The Chinese-language laundering services now operate openly across different social media platforms like Telegram. There, they offer crypto-based laundering as a service to criminal clients worldwide.
These services help process money gotten from scams, hacks, fraud, and other illicit activities, basically, it acts as a sort of financial intermediary within a broader underground economy.
Authorities have started working in collaboration with international actions to see that these launderers are brought to justice.
Some of the recent efforts that were made include sanction on crime facilitators like the Prince Group and Huione Group, which have been accused of enabling large-scale laundering tied to scam operations.
Financial regulators have also warned that these networks continue to pose a growing national security risk. By enabling the rapid movement and concealment of illicit funds, they not only harm individual victims but also undermine global efforts to fight against financial and cybercrime.
Despite increased scrutiny, experts say these laundering ecosystems would continue to adapt.
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