Chinese criminal syndicates move $16bn via crypto in 2025

Money-laundering criminal networks using Chinese language surpassed $16bn in illicit funds crypto transactions last year.

Such groups, operating from Southeast Asia, were responsible for approximately 20% of the global crypto crime market, newly released report suggests.

Criminal organizations use cryptocurrency to move ill-gained funds

It was back in 2021 when China implemented a ban on trading with cryptocurrency.

At the time, the country acknowledged that crypto is often used for laundering ill-gained funds, including from illegal gambling, scams and other criminal activities.

Since the crypto ban, China has maintained its focus on taking down criminal organizations, including cross-border syndicates operating across Southeast Asia and countries such as Myanmar and Cambodia.

A newly released report from CNBC highlights how big Chinese-language money laundering networks are, revealing that an estimated $16.1bn in ill-gained funds was moved with the help of cryptocurrency last year alone.

The report cites recent data from Chainalysis, acknowledging the growing adaptability of criminal groups that use crypto to launder proceeds.

Cryptocurrency enables criminal organizations to move funds

Oftentimes, such criminal syndicates are involved in a range of unlawful activities, including but not limited to money laundering, online scams, illegal gambling, forced labor, drug trade and human trafficking.

Andrew Fierman, Chainalysis' Head of National Security Intelligence, explained that criminal networks often connected via Telegram.

The secure chat platform offered criminals a way to communicate and organize a range of unlawful transactions.

According to Chainalysis, "guarantee" platforms via Telegram-based channels offered services that connected one criminal group to another.

While those "guarantee" platforms were not directly involved with the criminal syndicates, they facilitated marketing of services that enabled money laundering and other crimes, the firm discovered.

Fierman explained: "We have seen everything from North Korean money and DPRK-related hacks going through, to a whole host of other illicit activity."

He pointed to the growing popularity of crypto for criminal organizations as a way to easily move illicit funds without detection.

At the same time, Fierman revealed that such criminal groups often focus on stablecoins to ensure they do not lose money in the process of transferring.

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