Chainalysis’ latest findings reveal that Chinese money laundering networks processed roughly 20% of all illicit cryptocurrency funds in 2025, underscoring the scale of cross-border laundering activity. They laundered an average of $44 million in illicit crypto per day, totaling about $16.1 billion for the year, while on-chain illicit crypto amounted to $82 billion last year, up from $10 billion in 2020. The groups have professionalized operations, promoting their services through Telegram groups and relying on “guarantee” platforms that offer escrow protection, enabling launderers to connect with customers rapidly. Experts described these networks as rapidly evolving into multi-billion-dollar cross-border operations serving transnational crime across Europe and North America.
Even after sanctions against the Cambodia-based Huione Group, Telegram channel removals, and a Cambodian license revocation, Chainalysis notes vendors have migrated to other platforms where they advertise their services. They launder funds using a variety of mechanisms, including money mules and Black U services, which launder cryptocurrency stolen through hacking campaigns, exploit attacks, scams and other cybercrime. They also provide swapping services to convert crypto into multiple assets, a popular laundering method among Southeast Asian and North Korean criminal actors.
Separately, the U.S. Treasury sanctioned the Prince Group and its chairman Chen Zhi in October for an alleged cyber scam empire involving more than 100 shell companies used for money laundering. Zhi had $15 billion worth of bitcoin seized by the Justice Department and was arrested and extradited to China in January.
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