Chinese-language money laundering networks are now dominating the use of informal service-based networks for laundering illicit funds, according to Chainalysis. These networks emerged during the COVID-19 pandemic and now account for roughly 20% of illicit crypto flows, processing $16 billion in 2025. Centralized exchanges have tightened security measures to combat illicit transactions.

Chainalysis reported that Chinese-language networks have seen a 7,325 times faster growth in inflows since 2020 compared to other laundering endpoints. The on-chain money laundering ecosystem has also expanded significantly, with over $82 billion in illicit funds laundered in 2025, driven by increased accessibility and adoption of crypto.

Law enforcement needs to target illicit operators and vendors, along with their advertising venues, to disrupt on-chain money laundering, according to Chainalysis. There is a gap between criminal capabilities and law enforcement in dealing with crypto use, highlighting the need for a global effort to upskill law enforcement on crypto capabilities and improve information sharing mechanisms.

Read more at cointelegraph.com: Crypto Laundering On Centralized Exchanges Declines: Report