Amber Casino and former scam center, owned by Chen Zhi, a Chinese businessman who was deported to China, is seen in Sihanoukville, Cambodia, on Jan. 18, 2026.
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Chinese-language money laundering networks funneled an estimated $16.1 billion in illicit funds through cryptocurrency transactions in 2025, according to a report released Tuesday by blockchain data analysis firm Chainalysis.
These networks, known as CLMNs, accounted for roughly one-fifth of the illicit cryptocurrency ecosystem in 2025, which Chainalysis valued at over $82 billion.
The criminal networks primarily operate through various channels and chat groups on the messaging platform Telegram, where launderers advertise their services to prospective customers. These postings often include pictures showing heaps of cash and public testimonials as proof of liquidity and service quality, according to the report.
These Telegram-based channels, known as “guarantee” platforms, function as marketing hubs or informal escrow services that connect vendors with prospective clients. While the platforms do not control the underlying transactions, Chainalysis said they are the main conduits through which illicit deals are arranged.
Beyond money laundering, activity on these platforms includes other forms of criminal trade, such as human trafficking and the sale of Starlink dishes used in Southeast Asian scam centers, according to Andrew Fierman, Head of National Security Intelligence at Chainalysis.
These are very large, well resourced organizations. This is not like a few criminals operating out of a back room flat.
Mark Button
Criminology professor at the University of Portsmouth
Prospective clients also range from organized crime syndicates to sanctioned state actors, Fierman said.
“We have seen everything from North Korean money and DPRK-related hacks going through, to a whole host of other illicit activity,” Fierman told CNBC.
Such Telegram-based platforms are common mediums for illicit networks worldwide, according to Mark Button, a criminology professor at the University of Portsmouth, who has studied similar networks in India and West Africa.
The report identified six main techniques used by Chinese-language money laundering networks to launder funds, often relying on digital assets such as cryptocurrencies to move funds discreetly.
According to Fierman, cryptocurrencies appeal to criminal actors because of their liquidity, ease and relative anonymity, particularly for those seeking to avoid having their funds frozen on traditional financial platforms.
Stablecoins such as USDT, issued by Tether, and Circle’s USDC, are cryptocurrencies designed to maintain a stable value relative to a specified asset, often a fiat currency like the U.S. Dollar. Their lower volatility compared with cryptocurrencies such as Bitcoin or Ethereum helps keep transaction costs down.
“If you are involved in illicit activity, the last thing you want to be doing is losing more money,” Fierman said. “You already have to pay money for the laundering process… the last thing you want is for there to be a really bad week on Bitcoin and lose another 10% of your money.”
Casinos, crypto and crime
Many organized crime groups that use crypto-based laundering services often also move funds through legitimate-looking enterprises, Button said.
“Casinos are a classic means to launder any criminal proceeds,” he said, adding that it is common practice for criminal groups to launder illicit funds through inflated revenue figures.
Since at least 2022, Southeast Asia has begun emerging as a hub for licensed and unlicensed casinos with links to organized crime, according to a 2024 report by the United Nations Office on Drugs and Crime.
While the Chainalysis study examined organized networks that use Mandarin as their primary communication medium, many transactions also originate from outside China, Fierman noted. These include places such as Cambodia and Myanmar, where organized crime syndicates have been found to run elaborate scam centers.
“China has actually been very good at cracking down on these kinds of scams, because they generally don’t like organized crime,” Button said.
On Thursday, China’s state media Xinhua reported that 11 members of a Myanmar-based scam syndicate were executed on charges of “intentional homicide, intentional injury, unlawful detention, fraud and casino establishment”.
China has strict laws on money laundering and has banned cryptocurrency trading since 2021, citing its use in organized crime.
As a result, Chinese criminal groups often relocate to jurisdictions in Southeast Asia like Cambodia and Myanmar, where weaker legislation and corrupted local officials allow them to operate more freely, according to Button.
While authorities have proactively sought to clamp down on these transnational crime syndicates, enforcement has been challenging due to the sophistication of their operations and the complexity of cross-border enforcement.
“These are very large, well-resourced organizations. This is not like a few criminals operating out of a back room flat,” Button said.
Chainalysis estimated that these Chinese-language money laundering networks laundered the equivalent of $44 million per day in 2025.
Despite efforts to clamp down on such illicit trade, Fierman said many of these networks are likely to continue evading capture. “This is how illicit actors operate. They evolve, and once one gets detected, they hop to another avenue”.
