Crypto is playing a growing role in human trafficking networks, report shows

A recent report from Chainalysis highlights a staggering 85% increase in cryptocurrency payments to suspected human trafficking networks in 2025, amounting to hundreds of millions in transactions traced on public blockchains. Most of this activity is primarily linked to a burgeoning criminal ecosystem in Southeast Asia, where various illicit operations, including scam compounds and illegal online gambling, thrive alongside Chinese-language money laundering networks. The research categorizes the crypto activities of human traffickers into three main areas: international escort and prostitution services, labor placement agents, and vendors of child sexual abuse material (CSAM). Despite the concentration of these services in Southeast Asia, payments are flowing in from customers across North and South America, Europe, and Australia, illustrating the global extent of these operations. Chainalysis notes that cybercriminals are increasingly utilizing messaging platforms like Telegram for advertising their services, recruiting victims, and coordinating payments. Tom McLouth, an intelligence analyst at Chainalysis, remarked, "There's a broader migration from older darknet forums into messaging apps and semi-open Telegram ecosystems, enabling these networks to scale rapidly, offer 'customer services,' and facilitate global money transfers with reduced friction." The report emphasizes that the transparency provided by public blockchains gives unprecedented visibility into criminal financial flows, a crucial tool for disrupting such activities. McLouth pointed out, "The financial scale is substantial, with transactions worth hundreds of millions of USD, and the physical harm inflicted is far greater than any dollar amount." Data indicates that many transactions were orchestrated by highly organized networks. While some escort services operate within legal boundaries, the report identifies potential trafficking operations through specific financial behaviors. Notably, these networks are increasingly leveraging stablecoins and Chinese-language money laundering groups to quickly cash out illicit gains. In 2025, an estimated $16.1 billion in illicit crypto flows was linked to these laundering networks, which primarily function through Chinese-language Telegram channels to help criminals 'clean' their funds. Chainalysis revealed that international escort services involved in crypto transactions accounted for a significant portion of high-value transfers, with nearly half exceeding $10,000. Listings examined by researchers offered cross-border travel packages and multi-day companionship services, with some VIP offerings priced over $30,000, indicating professionalized operations rather than isolated individuals. Moreover, the report outlines another category involving 'labor placement agents' who recruit individuals into scam compounds, particularly those notorious for executing crypto-based schemes in Southeast Asia. Recruitment fees often range from $1,000 to $10,000 in cryptocurrency, aligning with prices advertised on Telegram. Posts seeking 'customer service' or 'data entry' workers promised attractive salaries and travel expenses, but victims were reportedly coerced into conducting romance scams and other online frauds targeting victims abroad. The analysis also reveals connections between recruitment channels and wallets tied to illegal gambling and money laundering services, suggesting that trafficking activities are closely linked with broader criminal enterprises. Last year, the U.S. Department of Justice seized $15 billion in bitcoin from a major Cambodian scam center involved in romance scams, underscoring the scale of this issue. Chainalysis also identified networks engaged in CSAM, which, while operating under different payment structures, exhibited similarly organized financial patterns. Approximately half of CSAM-related crypto transactions were below $100, indicative of subscription-based models prevalent in private chat groups. The research observed a shift of funds from mainstream cryptocurrencies to privacy-focused assets like Monero, as well as instant exchange services that do not require identity verification. The report also highlighted alarming overlaps between CSAM subscription services and communities involved in sadistic online extremism, where minors are targeted through sophisticated sextortion schemes, further perpetuating cycles of abuse. In July 2025, Chainalysis assisted in identifying one of the largest CSAM websites on the dark web, which utilized over 5,800 cryptocurrency addresses and generated over $530,000 in revenue since July 2022. McLouth concluded, "As cryptocurrency adoption expands, its use for both illicit and legitimate purposes will likely increase. In the short term, I don’t foresee a decline in crypto's involvement in trafficking-related activities; if anything, it may continue to grow despite improved enforcement efforts."