The number of cryptocurrency payments to suspected human trafficking groups surged 85% in 2025 as digital assets play a growing role in illicit online schemes, according to a new report from analytics firm Chainalysis.
Hundreds of millions of transactions on public blockchains exposed links between cryptocurrency payments and human trafficking networks, child sex abuse operations and online scams, according to the report, which was earlier cited by CNBC.
Most of the alleged criminal crypto activity was traced back to a growing criminal ecosystem in Southeast Asia, though the payments themselves were sent from locations around the world, including North and South America, Europe and Australia, according to Chainalysis.
International escort and prostitution services, scam compounds in Southeast Asia and criminals sharing child sex abuse materials largely relied on crypto payments, the report found.
The shocking report also found that these human trafficking networks are no longer hiding on the “dark web” — but operating in plain view on messaging platforms like Telegram, where they recruit victims and organize crypto payments.
“The key takeaway is that the true financial scale is large, at least hundreds of millions of USD worth of crypto transactions, and the physical harm is orders of magnitude greater than any dollar figure,” Chainalysis intelligence analyst Tom McLouth told CNBC.
However, the transparency of public blockchains has also allowed “unprecedented visibility” into these criminal transactions, according to the report.
Authorities and watchdog organizations have been able to identify criminal networks by looking out for key red flags, like a reliance on stablecoin payments or the use of Chinese-language money laundering groups, the report said.
Chinese-language Telegram channels funneled at least $16.1 billion in illicit funds last year, according to Chainalysis.
The report found a significant amount of crypto transactions above $10,000 for international escort and prostitution services. Some listings advertised multi-day “companionship” services and VIP packages for more than $30,000 in cryptocurrency.
There were also many recruitment fees between $1,000 and $10,000 charged by alleged “labor placement agents” — who were actually finding victims to work in illicit scam compounds in Southeast Asia.
Hundreds of thousands of victims seeking work have been trafficked into these hotel and casino scam centers, according to a Bloomberg report.
Once recruited, victims are allegedly forced to conduct romance scams, fake cryptocurrency investment schemes and other online frauds targeting victims abroad — speaking with victims over the phone in their respective languages to appear more legitimate.
In 2023, cybercriminal syndicates in Southeast Asia stole as much as $37 billion, according to a United Nations report.
Just last year, the Department of Justice announced the seizure of $15 billion worth of bitcoin from a massive scam center in Cambodia.
About half of crypto transactions related to child sex abuse material were below $100, but that price point represents individual payments within subscription-based models, according to the Chainalysis report.
“These [sadistic online extremism] groups specifically target and manipulate minors through sophisticated sextortion schemes, with the resulting content being monetized through cryptocurrency payments, perpetuating cycles of abuse,” the report said.
