Chinese-language networks now dominate crypto money laundering

[etfs]

The use of centralized crypto exchanges for laundering illicit funds is declining, with Chinese-language networks emerging as a major hub for crypto money laundering, according to a new report from Chainalysis.

These informal, service-based networks operate through Telegram and other channels, offering money-laundering “as a service” via money mules, over-the-counter desks, and crypto gambling platforms. Since their emergence in early 2020, such networks have grown rapidly, now processing roughly 20% of tracked illicit crypto flows, while inflows to centralized exchanges have slowed due to stronger compliance and the ability to freeze funds.

Chainalysis highlighted that these networks now account for a disproportionate share of global on-chain laundering activity, reflecting a broader shift in how illicit actors move crypto.

[tradelikepro]

people keep saying crypto is transparent while forgetting that coordination happens entirely off-chain.