On the 27th, blockchain researchers stated that last year, money launderers received at least $82 billion (324.284 billion MYR) through cryptocurrencies, a significant increase from $10 billion (39.547 billion MYR) in 2020, partly due to the rapid growth of Chinese-speaking organizations.
According to foreign media reports, American blockchain research company Chainalysis pointed out in its report that the fastest-growing category is Chinese-speaking money laundering networks, which emerged during the pandemic and are expected to handle nearly $40 million (158 million MYR) worth of cryptocurrency daily by 2025.
While blockchain records wallet addresses involved in cryptocurrency transactions, it is extremely difficult to identify the real identities behind these wallets.
However, Chainalysis stated that by 2025, nearly 1,800 active wallets are involved in Chinese-speaking money laundering networks, handling cryptocurrency valued at $16.1 billion (63.67 billion MYR), and this figure is likely still underestimated.
China bans cryptocurrency trading and does not recognize digital tokens as legal currency or assets. Ying Yong, Procurator-General of the Supreme People’s Procuratorate of China, stated that in 2024, China prosecuted 3,032 individuals, mainly for money laundering activities related to cryptocurrencies.
For years, global regulators and governments have repeatedly warned that cryptocurrencies are often subject to much less oversight than mainstream finance and have become a hotbed for crime. However, experts also note that this is only one of many methods criminals use to move funds.
Chainalysis pointed out that in order to evade investigation, crypto money laundering networks use escrow platforms that offer custodial services. These platforms allow launderers to openly solicit clients and advertise their services.
Chainalysis said: “Chinese-speaking escrow platforms, fund transfer services, and related financial crime networks have formed a complex and resilient ecosystem that continues to evolve even in the face of law enforcement actions.”
“As with other types of illicit on-chain activities, crackdowns on escrow services may be disruptive, but the core networks still persist, and will shift to alternative channels when faced with challenges.”