Cryptocurrency use for transactions involving human trafficking surged 85% in 2025.
According to a Feb. 13 Chainalysis report, which tracked cryptocurrency-facilitated human trafficking payments tied to escort services, labor recruiters connected to Southeast Asian scam compounds, and child sexual abuse material, among other categories, the networks comprised cryptocurrency transactions valued at “hundreds of millions of dollars across identified services.”
Chainalysis said that the various payment methods involved ranged from Bitcoin and alternative Layer 1 tokens to stablecoins. Meanwhile, platforms involved with facilitating these transactions included Chinese-language money laundering networks and various Telegram-based services that operated guarantee and escrow mechanisms to coordinate and confirm payments.
Large transactions were primarily centered around Telegram-based international escort networks, with 48.8% of each transaction exceeding $10,000. These platforms were mostly reliant on stablecoin payments, per the report.
Transactions in connection with CSAM were smaller in size, with an average value under $100. However, one platform tracked by Chainalysis had reportedly used over 5,800 cryptocurrency addresses and accumulated over $530,000 since July 2022. These platforms, which previously operated primarily using Bitcoin (BTC), were found to be using privacy-focused Monero (XMR) to launder the proceeds.
“Instant exchangers, which provide rapid and anonymous cryptocurrency swapping without KYC requirements, play a crucial role in this process,” Chainalysis said.
Meanwhile, Scam compounds use a combination of Telegram-based recruitment channels, guarantee platforms like Tudou and Xinbi, and stablecoin payment rails to coordinate and process payments.
As previously reported by crypto.news, these organizations lure in victims through fake job offers before forcing them to operate various crypto-linked scams under inhumane conditions.
Chainalysis was able to trace the flow of funds from several different countries like the United States, United Kingdom, Brazil, Spain, and Australia, to Chinese-language services that processed large-scale stablecoin transactions and facilitated laundering through Southeast Asian trafficking networks.
“While traditional trafficking routes and patterns persist, these Southeast Asian services exemplify how cryptocurrency technology enables trafficking operations to facilitate payments and obscure money flows across borders more efficiently than ever before,” Chanalysis said.
Cryptocurrency technology has long been criticized for supporting criminal activity by helping bad actors circumvent traditional financial controls and oversight. Recently, there has been renewed scrutiny over its role in ransom demands and alleged links to early crypto investments associated with Jeffrey Epstein.
However, Chainalysis notes that the underlying blockchain technology can be leveraged to detect and disrupt trafficking operations, as it offers visibility that is not possible with cash transactions.
It urged compliance teams and law enforcement to adopt proactive monitoring strategies and track key risk indicators.
