Crypto-linked money laundering activity exploded last year, with illicit flows topping $82 billion in 2025, according to a new report from blockchain analytics firm Chainalysis. That figure is more than eight times higher than the roughly $10 billion recorded in 2020, showing how quickly criminal finance is adapting to digital assets.
Chinese-language networks at the center
A major share of that activity ran through Chinese-language money laundering networks, which handled about $16.1 billion, or roughly 20% of the total. Chainalysis found that since 2020, inflows to these networks have grown dramatically faster than those going through centralized exchanges, DeFi platforms, or other illicit on-chain channels.
Experts say part of the rise is linked to China’s strict capital controls. Wealthy individuals trying to move money out of the country create a ready pool of liquidity, which can intersect with organized crime groups elsewhere that need to clean illicit funds. That overlap has helped these networks scale quickly.
How the money gets cleaned
These networks use a mix of techniques to obscure the origins of funds. Tactics include recruiting people to lend their financial identities, selling illicit crypto at discounted rates to willing buyers, and moving funds through complex chains of transactions to muddy the trail. On average, this ecosystem processed nearly $44 million per day last year.
The report highlights how crypto continues to be a double-edged sword. While it enables faster and more open financial systems, it also gives sophisticated actors new tools to move and disguise money across borders at scale.