Crypto Launderers Shift to Chinese Telegram Networks

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Crypto Launderers Ditch Exchanges for Chinese Telegram Networks

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 28, 2026

Key Takeaways

Chainalysis found that crypto criminals are shifting from centralized exchanges to Chinese-language laundering networks;
These online groups use money mules, private trades, and gambling sites to move and hide illicit crypto;
Over $82 billion in crypto was laundered in 2025, with $16 billion tied to Chinese-language Telegram-based networks.

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Crypto Launderers Ditch Exchanges for Chinese Telegram Networks

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Chainalysis reported that crypto criminals are moving away from centralized exchanges and turning to informal Chinese-language laundering networks.

These services, which operate mostly through online groups, have become a channel for moving illicit funds in recent years.

According to the company’s January 27 report, these networks operate like underground service providers. They help clients disguise or convert crypto by using money mules, private trading desks, and gambling platforms that mix and swap tokens outside of traditional exchanges.

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Chainalysis traced the rise of these groups to early 2020, during the start of the COVID-19 pandemic. Since then, they have grown and currently handle most known crypto-laundering activity.

Over the last five years, Chainalysis estimates they processed about 20% of tracked illegal crypto flows. During the same period, activity on centralized exchanges has dropped, largely because they can freeze suspicious funds.

The report found that, since 2020, inflows to Chinese-language networks have increased over 7,000 times faster than those to centralized exchanges.

While they are not the only option for criminals, Telegram-based Chinese-speaking groups make up a large share of on-chain money laundering worldwide.

Chainalysis estimates that more than $82 billion in illicit funds were laundered in 2025, up from $10 billion in 2020. Around $16 billion of that, or roughly $44 million each day, was linked to Chinese-language networks.

Recently, Chainalysis reported that scammers impersonating trusted people or companies stole far more crypto in 2025. What did the company say? Read the full story.