New research from blockchain analysis firm Chainaanalysis shows that cryptocurrency money laundering activities have expanded dramatically in the past five years, and Chinese networks are becoming a core pillar of the global underground economy.
The report estimates that more than $82 billion will flow through on-chain money laundering channels by 2025, up from about $10 billion in 2020. Chainaanalysis attributes this surge not only to growing liquidity in the cryptocurrency market but also to the professionalization of money laundering services operating openly across messaging platforms and blockchains.
The Chinese Money Laundering Network (CMLN) currently accounts for approximately 20% of known money laundering activity, the company said. Since 2020, as criminals have increasingly avoided venues where funds can be frozen, funds have been flowing into these networks thousands of times faster than through centralized exchanges or decentralized finance protocols.
Chainaanalysis found that in 2025 alone, CMLN processed at least $16.1 billion, spread across 1,800 active wallets and six core service types. These range from “runtime” brokers that provide initial access to bank accounts and exchange wallets, to vast networks of money mules, informal over-the-counter trading desks, and so-called “Black U” services that openly trade tainted cryptocurrencies at a discount.
At the heart of the ecosystem is a Telegram-based “guaranteed platform” that acts as an escrow and reputation center connecting buyers and sellers of money laundering services. Even if individual channels are disrupted, suppliers can quickly migrate to other channels, keeping operations largely intact.
The speed and scale of these networks suggest they have deep ties to off-chain criminal organizations, including fraud operations and cybercrime gangs. While recent sanctions and recommendations have drawn increased scrutiny, Chainaanalysis said the findings highlight how cryptocurrency laundering has developed into a resilient global services industry that can quickly adapt to law enforcement pressure.
Read more: AI-powered crypto scams stole $17 billion last year, says crypto analytics firm Chainaanalysis
