Crypto money laundering has surged at an alarming rate, reaching at least $82 billion last year, up from just $10 billion in 2020. As crypto markets have become more liquid, laundering operations have grown both sophisticated and brazen, operating openly across messaging platforms and blockchains while governments struggle to keep pace.
A considerable portion of the growth in crypto money laundering is attributed to Chinese-language networks, according to a report from Chainalysis. These groups processed nearly $40 million worth of cryptocurrency daily in 2025. Chainalysis estimates that such networks now launder more than 10% of the funds stolen worldwide through so-called “pig butchering” scams.
Moving to Social Media
These networks rely heavily on social media messaging platforms, particularly Telegram, which is based in Dubai. Telegram not only connects buyers and sellers of laundering services but also serves as an escrow hub for these transactions.
Services such as money mules, OTC desks, and gaming sites began appearing on the platform in early 2020, during the onset of the COVID-19 pandemic. Over time, these social platforms have largely replaced centralized crypto exchanges, which have tightened security controls in recent years.
The international nature of these scams has complicated law enforcement efforts. In China, over 3,000 individuals were prosecuted for crypto money laundering in 2024, according to a report from MSN. There have also been some successful attempts at international collaboration. In October 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and Financial Crimes Enforcement Network (FinCEN) announced they had worked with the UK’s Foreign, Commonwealth, and Development Office to dismantle the Huione Group, which laundered roughly $4 billion from digital currency scams.
Anatomy of a Scam
Just this week, the U.S. Justice Department announced that Chinese national Jingliang Su was sentenced to 46 months in prison for his role in laundering millions of dollars in cryptocurrency. According to prosecutors, criminals first contacted victims through social media, text messages, and online dating services to build trust. Su’s group then steered them into fraudulent crypto investments, using fake websites designed to mimic legitimate trading platforms.
More than $36.9 million in victim funds was ultimately transferred from U.S. bank accounts to a single account at Deltec Bank in the Bahamas. Deltec converted the funds into the stablecoin Tether before transferring the assets to a digital wallet controlled by Su’s group in Cambodia.