Crypto Cartels: A $82 Billion Money-Laundering Maze

Crypto money laundering surged to $82 billion, with Chinese-speaking networks leading this growth. These networks, emerging during the pandemic, processed $40 million in crypto daily. Despite the ban on crypto trading in China, laundering continues using complex techniques. Authorities remain challenged by these resilient and adaptive networks.

In a worrying uptick, money launderers processed at least $82 billion in cryptocurrencies last year, a significant increase from $10 billion in 2020, according to blockchain researchers. The surge is largely attributed to the fast-growing Chinese-speaking laundering networks that emerged amid the pandemic.

Chainalysis, a leading U.S.-based blockchain research firm, reported that the Chinese-language networks have become the most rapidly expanding segment of this illicit activity, processing nearly $40 million in crypto daily by 2025. The firm's analysis showed approximately 1,800 active wallets linked to these activities accounting for $16.1 billion, though these figures may be underestimated.

Despite China's ban on crypto trading and its legal actions against offenders, money laundering through cryptocurrencies continues to thrive. Criminals employ sophisticated methods, such as 'guarantee' platforms, to bypass detection, underscoring the persistent challenge international regulators face in combating these financial networks.

(With inputs from agencies.)