Chinese-language money laundering networks (CMLNs) laundered an estimated $16.1 billion in illicit cryptocurrency last year, accounting for nearly 20 percent of the $82 billion global crypto crime economy, according to industry analysis.
These highly organized money laundering network groups rely on sophisticated, Chinese-language hubs on Telegram to connect criminals, scam syndicates, and sanctioned actors.
At the center of these operations are so-called Telegram “Guarantee” platforms, which function like underground escrow marketplaces.
These channels advertise laundering services with photos of cash, client testimonials, and promises of secure transactions.
Beyond financial crimes, they also support human trafficking networks and supply equipment for scam compounds, including satellite internet gear such as Starlink.
CMLNs favor stablecoins like USDT and USDC, using at least six laundering techniques that minimize volatility risk.
Unlike Bitcoin, whose price swings can significantly erode criminal proceeds, stablecoins allow predictable, low-loss transfers.
In Southeast Asia, casinos are often used as fronts, artificially inflating revenues to legitimize illicit funds.
Chinese enforcement pressure—including crypto bans and crackdowns on scam operations has pushed these networks toward Cambodia and Myanmar, where regulation is weaker.
Experts warn these are not small criminal outfits but well-funded, adaptive organizations laundering tens of millions of dollars daily.
Despite growing awareness, cross-border enforcement struggles to keep pace, allowing these networks to continue evolving and expanding.
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