Rich by Coin

The rapid rise of these Telegram-based networks marks a fundamental shift in how criminal proceeds move globally, with significant implications for national security and enforcement strategies worldwide. Chinese-language money laundering networks (CMLNs) have emerged as the dominant infrastructure for crypto-based illicit fund laundering. According to Chainalysis’s 2026 Crypto Crime Report, released on Jan. 27, CMLNs now account for approximately 20% of known cryptocurrency money laundering activity, making them the industry’s largest laundering channel. CMLNs processed $16.1 billion in 2025 alone, equivalent to roughly $44 million per day, operating through more than 1,799 active wallets.

Since 2020, inflows to CMLNs have grown 7,325 times faster than inflows to centralized exchanges, 1,810 times faster than those to decentralized finance (DeFi), and 2,190 times faster than intra-illicit on-chain flows. Chainalysis identified on-chain behavioral fingerprints of six discrete service types that comprise the CMLN ecosystem: running point brokers, money mule motorcades, informal OTC services, Black U services, gambling services, and money movement services. Running point brokers serve as the initial entry channel for illicit fund transfers. Money mule motorcades handle the layering phase of money laundering, forming networks of accounts and wallets to obscure the origins of funds.

Informal OTC services advertise clean funds or White U and process fund transfers without KYC verification. Black U services specialize in tainted cryptocurrency derived from hacking, exploits, and scams, selling them at 10-20% below market rates. At the heart of the CMLN ecosystem are guarantee platforms such as Huione and Xinbi, serving as marketing venues and escrow infrastructure without controlling the laundering activity. Recent enforcement actions include the designation of Prince Group by the US Treasury’s OFAC and the UK’s OFSI, and FinCEN’s designation of Huione Group as a primary money laundering concern, yet core networks persist and migrate to alternative channels.