<div id="readability-page-1" class="page"><p><img width="1536" height="1024" src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2026/01/20260128_1354_Image-Generation_simple_compose_01kg1v8ajhf438n2j2ph88fyp1.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2026/01/20260128_1354_Image-Generation_simple_compose_01kg1v8ajhf438n2j2ph88fyp1.png"/></p><p>Crypto money laundering is no longer centred on large, centralised exchanges. Instead, informal Chinese-language networks are playing a growing role in helping criminals move and disguise illicit funds. </p><p>A new report from Chainalysis shows how these networks have expanded rapidly since 2020, reshaping the global on-chain laundering ecosystem.</p><p>These networks operate through Chinese-speaking online channels and offer laundering as a service. </p><p>They rely on money mules, informal over-the-counter trade desks, and gambling platforms to mix, swap, and move crypto.</p><p>Chainalysis said the shift reflects both tougher compliance at exchanges and the increasing sophistication of service-based laundering models.</p><h2>Why exchanges are being used less</h2><p>Centralised crypto exchanges have stepped up customer checks and transaction monitoring in recent years. </p><p>Regulatory pressure has increased globally, forcing platforms to improve controls and cooperate more closely with authorities.</p><p>As a result, exchanges are now better equipped to detect suspicious activity and freeze funds linked to illicit transactions.</p><p>Chainalysis said this has made exchanges less attractive to criminals. </p><p>Funds held on compliant platforms face a higher risk of being locked or seized, pushing laundering activity toward less regulated channels.</p><p>Over time, this has led to a steady decline in the use of exchanges as laundering endpoints.</p><p>In contrast, informal networks operating outside traditional compliance frameworks offer more flexibility. </p><p>They allow users to move funds with fewer checks, often combining multiple services to obscure transaction trails.</p><h2>How Chinese-language networks took hold</h2><p>According to Chainalysis, Chinese-language laundering networks began to emerge around the start of the COVID-19 pandemic in early 2020. </p><p>Since then, they have grown quickly and now dominate known crypto money laundering activity.</p><p>Over the past five years, these networks processed roughly 20% of tracked illicit crypto flows. </p><p>Chainalysis said this rise coincided with the decline in exchange-based laundering, highlighting a clear shift in criminal behaviour.</p><div><div><article><div><p><img src="https://imageproxy.pbkrs.com/https://pbs.twimg.com/profile_images/1413251511166148608/cIoTd6IF_normal.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="48" height="48" original-src="https://imageproxy.pbkrs.com/https://pbs.twimg.com/profile_images/1413251511166148608/cIoTd6IF_normal.jpg"/></p></div><p><span>In the next preview chapter of our 2026 Crypto Crime Report, we examine how Chinese-language money laundering networks processed $16.1 billion in illicit crypto funds in 2025 (about $44 million per day across 1,799+ active wallets).Read the full analysis here:</span></p><div><div><p><img src="https://imageproxy.pbkrs.com/https://pbs.twimg.com/media/G_q8_csXMAA4Hyg/query-Zm9ybWF0PWpwZyZuYW1lPXNtYWxs?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="680" height="442" original-src="https://imageproxy.pbkrs.com/https://pbs.twimg.com/media/G_q8_csXMAA4Hyg/query-Zm9ybWF0PWpwZyZuYW1lPXNtYWxs"/></p></div></div><p>6:20 PM · Jan 27, 2026</p><p><span>Read 4 replies</span></p></article></div></div><p>The growth rate has been extreme. Since 2020, inflows to identified Chinese-language networks grew 7,325 times faster than inflows to centralised exchanges. </p><p>Compared with other laundering endpoints, these networks have expanded at a far faster pace, driven by their ability to operate across borders and offer bundled services.</p><p>Many of these services are advertised through Chinese-language messaging channels, where operators connect buyers and sellers, coordinate money mules, and route funds through gambling platforms or informal trading desks.</p><h2>What the data shows about scale</h2><p>The broader on-chain money laundering ecosystem has expanded sharply alongside the rise of these networks. </p><p>Chainalysis estimates that more than $82 billion in illicit funds were laundered through crypto in 2025, up from $10 billion in 2020.</p><p>Chinese-language networks accounted for about $16 billion of that total, equivalent to roughly $44 million per day. </p><p>Chainalysis said this growth reflects the increasing accessibility and liquidity of crypto assets, which has lowered barriers for both users and service providers.</p><p>The report also pointed to a structural shift in who facilitates laundering. </p><p>Instead of relying on large platforms, criminals are turning to specialised vendors that offer tailored services across multiple blockchains and transaction types.</p><h2>Why enforcement is struggling to keep up</h2><p>Chainalysis said tackling these networks will require a different approach from traditional enforcement efforts. </p><p>Targeting individual transactions is unlikely to be effective on its own, given the scale and organisation of service-based laundering.</p><p>The report highlighted a widening gap between the technical capabilities of criminals and those of law enforcement agencies. </p><p>While blockchain tracing firms have helped in some cases, Chainalysis said current efforts represent only a small part of what is needed.</p><p>Greater focus on identifying operators, vendors, and advertising venues was flagged as critical, along with better information sharing across borders. </p><p>As laundering becomes more decentralised and service-driven, enforcement strategies will need to adapt accordingly.</p><p>The post Why crypto laundering is moving into Chinese-language networks appeared first on Invezz</p></div>

<p>Crypto money laundering is shifting from centralized exchanges to informal Chinese-language networks, which have rapidly expanded since 2020. A Chainalysis report reveals these networks now dominate illicit crypto flows, processing about $16 billion in 2025. The rise is attributed to stricter compliance at exchanges, pushing criminals towards less regulated channels. These networks offer laundering services through money mules and gambling platforms, making them more attractive for illicit activities. Enforcement agencies face challenges in keeping up with the sophisticated and decentralized nature of these laundering operations.</p>

- A report from Chainalysis reveals a rise in crypto money laundering through informal Chinese-language networks, surpassing centralized exchanges since 2020.  
- These networks utilize various services like money mules and gambling platforms to facilitate the movement of illicit funds, reflecting stricter compliance at exchanges.  
- Overall, about $82 billion in illicit crypto was laundered in 2025, with $16 billion attributed to these networks, emphasizing the need for adaptive enforcement strategies against evolving laundering models.

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Why crypto laundering is moving into Chinese-language networks