Chinese‑Language Telegram Networks Account for One‑Fifth of Global Crypto Laundering, Chainalysis Finds
Roughly $16 billion of illicit crypto moved through these groups in 2025, representing about 20 % of the $82 billion total recorded for the year.
A new Chainalysis report released on Jan. 27, and shared with The Defiant, shows that criminal laundering operations that communicate primarily in Chinese on Telegram and related “guarantee” platforms have surged dramatically over the past five years. In 2025 alone, the ecosystem processed an estimated $16 billion in tainted funds – roughly $44 million per day – across approximately 1,800 active wallets.
Scale and Growth Relative to Other Channels
The $16 billion handled by Chinese‑language networks represents about one‑fifth of the $82 billion in crypto‑related money‑laundering activity recorded for 2025. Chainalysis notes that the rise of these groups has outpaced the growth of illicit flows routed through centralized exchanges (CEXs) and decentralized finance (DeFi) protocols. While CEX‑based laundering grew at a steady double‑digit annual rate, the Telegram‑centric channels expanded at a markedly faster pace, suggesting a shift in criminal preferences toward platforms that combine anonymity with native escrow functionalities.
The “Guarantee” Model
At the core of the network are so‑called guarantee platforms – escrow‑style marketplaces that allow users to trade illicit crypto under the pretense of a third‑party guarantee. Prominent examples cited in the report include Huione and Xinbi. These services act as intermediaries that match sellers of stolen or fraud‑derived assets with buyers willing to accept higher risk for discounted prices. When law‑enforcement agencies have taken down individual hubs, operators have typically migrated to alternative Telegram groups or spun up new guarantee services, limiting the long‑term impact of takedowns.
Enforcement Challenges
Chainalysis attributes the rapid expansion of these networks to a blend of factors:
- Jurisdictional fragmentation – National laws differ markedly in how cryptocurrency is regulated, creating safe‑havens.
- Border‑based barriers – Cross‑border coordination remains uneven, complicating investigations that span multiple legal regimes.
- Information‑sharing gaps – Public‑private cooperation on crypto‑specific intelligence is still developing, hindering early detection.
- Technical limitations – While blockchain analytics have improved, tracing funds that bounce between numerous wallets, guarantee platforms, and cross‑chain bridges remains resource‑intensive.
These dynamics give criminals a “low‑risk, high‑reward” environment, according to the firm.
The DeFi Dimension
Earlier in the month, Chainalysis warned that illicit actors are increasingly using DeFi infrastructure—decentralized exchanges (DEXs), cross‑chain bridges, and protocol‑level lending—to obscure the origin of stolen assets. The current findings suggest that, although DeFi routes are gaining traction, Telegram‑based guarantee platforms still dominate the illicit ecosystem in terms of sheer volume.
Analysis
The data underscore a strategic evolution in crypto‑related money laundering. Telegram’s encrypted, group‑based architecture provides a low‑cost entry point for operators to build trustless escrow services without the regulatory overhead of a formal exchange. The guarantee model, in particular, mimics traditional “hawala” systems, leveraging reputation and community enforcement rather than formal legal contracts.
From a regulatory standpoint, the report reinforces the need for:
- Enhanced cross‑border collaboration – Criminal proceeds often travel across multiple jurisdictions; coordinated takedowns could disrupt the “channel hopping” behavior observed after enforcement actions.
- Targeted intelligence sharing with platform providers – Engaging Telegram (and its regional variants) to flag illicit groups may curtail the rapid re‑creation of networks.
- Investment in advanced blockchain forensics – Techniques that can trace funds through guarantee platforms, layered mixers, and DEXs will become increasingly vital.
For the DeFi sector, the findings are a reminder that the open‑access nature of protocols can be misused as a laundering conduit. While the current share of illicit flows through DEXs remains lower than that of Telegram‑based channels, the trend points toward a growing convergence of traditional “off‑chain” escrow services and on‑chain anonymity tools.
Key Takeaways
- $16 billion in illicit crypto moved through Chinese‑language Telegram networks in 2025, representing ≈20 % of global crypto‑money‑laundering activity.
- The ecosystem operates through ≈1,800 wallets, handling ≈$44 million per day.
- “Guarantee platforms” such as Huione and Xinbi serve as escrow marketplaces, facilitating the exchange of stolen crypto.
- Enforcement actions have limited short‑term impact; vendors quickly shift to alternative groups or launch new platforms.
- Growth of Telegram‑based laundering has outpaced that of centralized exchanges and DeFi protocols, highlighting a preference for low‑overhead, community‑driven escrow mechanisms.
- Persistent challenges—jurisdictional fragmentation, limited information sharing, and technical tracing constraints—continue to make crypto an attractive vehicle for criminals.
- The broader crypto ecosystem, especially DeFi, must brace for increasing sophistication in laundering tactics that blend off‑chain escrow services with on‑chain anonymity tools.
The findings are based on Chainalysis’ proprietary blockchain‑analytics data and were first reported by The Defiant.
Source: https://thedefiant.io/news/research-and-opinion/crypto-money-laundering-activity-report-chainalysis
