Chinese-language crypto money laundering networks have become one of the most powerful forces behind digital assets-related crimes. These groups are largely operating through Telegram channels and connect criminals with fast, informal services that help move and disguise illicit funds across borders.
It is worth noting that money laundering activities, which once funnelled through traditional banks or underground cash couriers, have now shifted to highly organized crypto channels that run entirely online. This shift indicates a rapid change in the transactions of criminal money. According to Chainalysis data, these networks are no longer operating in the shadows. Instead, they now account for a significant share of crypto money laundering activity worldwide.
How Chinese Networks Dominate Crypto Money Laundering
The 2026 Crypto Crime Report released by Chainalysis today revealed that the Chinese-language money laundering networks are now dominating the crypto money laundering space. Illegal actors use these networks to move and hide stolen and other illicit funds via Telegram channels.
This indicates that instead of traditional methods, illegal players are using quick, online crypto networks. Due to the fast and irreversible features of blockchain, it becomes difficult for the enforcement department to track these movements. Also, funds are often split into smaller amounts, passed through hundreds of wallets, and moved across multiple chains in minutes. This makes it hard to follow a clear trail before the money disappears into new addresses or is converted into cash.
The Chainalysis report revealed that these Chinese networks are responsible for at least 20% of all crypto money laundering activities. This gives them the title of the largest laundering channel in the industry. In 2025 alone, these groups moved about $16.1 billion in crypto using more than 1,799 active wallets. The report also stated that they have helped illegal actors to launder an average of $44 million every day.
Since 2020, money flowing into these networks has increased far faster than other parts of the crypto ecosystem. They grew thousands of times faster than centralized exchanges, DeFi platforms, and even other illegal on-chain activities.
How They Move and Hide Funds?
Significantly, these networks rely on a wide range of services, each playing a specific role in moving and hiding funds. For instance, running point brokers act as the first stop in the laundering process. They recruit individuals to lend out their bank accounts, crypto wallets, or exchange deposit addresses. This is to help illegal funds to be received and passed along quickly.
Money mule networks come next, spreading funds across many accounts and wallets to hide the origin of the money. The next service is the informal over-the-counter (OTC) services, which promise “clean” money. This is often called “White U.” They help move money without identity checks. Blockchain data shows that many of these services are linked to platforms like Huione.
“Black U” services deal in tainted crypto from hacks, scams, and exploits. They sell these assets at a discount to attract buyers. This is most fast-growing service, moving $1 billion in crypto in just seven months.
In addition, gambling platforms are also used to launder money by taking advantage of high transaction volumes. Some Telegram-based services are reportedly offering fixed or manipulated outcomes.