Chainalysis Flags Hundreds of Millions in Crypto Tied to Trafficking Groups

Chainalysis reports an 85% rise in crypto flows tied to trafficking networks, with stablecoins widely used in illicit operations.

Crypto payments are playing a growing role in suspected human trafficking operations. New findings from Chainalysis show a sharp increase in digital asset flows linked to suspected human trafficking networks in 2025. Investigators report that the rising adoption of digital assets has made it easier for such networks to move funds across jurisdictions.

Crypto Transfers to Trafficking Operations Jump 85% Year Over Year

Blockchain analytics firm Chainalysis reported that crypto payments linked to suspected trafficking groups increased 85% year over year. Total transaction volume reached hundreds of millions of dollars across identified services.

Many of these networks operate in Southeast Asia, where scam compounds and forced labor operations have become a growing concern. Investigators believe some victims are recruited through fake job offers and then forced to work in online scam centers.

The report also found that these trafficking networks are connected to online casinos and Chinese-language money laundering groups. Scam compounds often work closely with such financial networks to move and clean funds. As these related operations grow, the money flows between them increase as well.

Investigators found that several trafficking-linked groups relied on Telegram to promote services and recruit victims. Some accounts advertised international escort services and arranged payments in crypto.

Others posed as labor placement agents, promising jobs abroad but later forcing individuals to work in fraudulent compounds. Authorities also tied certain wallets to prostitution rings and vendors selling illegal content. Each network used crypto in slightly different ways, depending on its structure and location.

Meanwhile, payment patterns showed a clear preference for stablecoins in escort and prostitution operations. Because fiat-pegged assets maintain a stable value, pricing services is easier and exposure to sharp market swings is reduced. 

On-Chain Records Help Authorities Track Suspicious Transfers

According to Chainalysis, blockchain records can help investigators trace illegal crypto activity. Notably, crypto payments are recorded on a public blockchain. With the right tools, authorities and compliance teams can review those records and spot unusual money movements. 

Repeated cross-border payments to labor agents can point to forced work schemes. At the same time, very large volumes moving through guarantee platforms may signal organized abuse.

Moreover, digital asset transfers are logged on open blockchains, creating a permanent record. With proper analytical tools, investigators can trace how funds move between wallets. Such visibility helps compliance officers and law enforcement detect irregular patterns

Separately, the firm flagged heavy inflows into areas already associated with trafficking as a key risk signal. Wallets linked to recruitment channels on Telegram introduce an additional layer of concern. Close monitoring of on-chain activity, coupled with standard anti-trafficking measures could limit further misuse of digital assets.

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