Cryptocurrency payments to suspected human trafficking syndicates surged 85% in 2025, with hundreds of millions of transactions traced on public blockchains, according to a new report by Chainalysis. The blockchain analytics firm indicated that a significant portion of this illicit activity was tied to a burgeoning criminal ecosystem in Southeast Asia. This region has become a hub for interconnected criminal operations, including scam compounds, illegal online gambling, and sophisticated money laundering networks primarily utilizing Chinese-language channels.
Chainalysis identified three primary categories for cryptocurrency use by human traffickers: international escort and prostitution services, labor recruitment for scam operations, and the distribution of child sexual abuse material (CSAM). While the blockchain data points to a concentration of these activities in Southeast Asia, the origin of payments spanned across North and South America, Europe, and Australia, underscoring the global reach of these criminal enterprises.
The report also highlights a noticeable shift in how cybercriminals operate, with messaging platforms like Telegram increasingly being used to advertise illicit services, recruit victims, and manage payment coordination.
“We are observing a significant migration from traditional darknet forums to messaging apps and semi-open Telegram ecosystems,” stated Tom McLouth, a Chainalysis intelligence analyst. “This, coupled with the use of cryptocurrencies, enables these networks to scale more rapidly, offer ‘customer service’ functionalities, and facilitate global money movement with considerably reduced friction.”
Chainalysis emphasizes that the inherent transparency of public blockchains provides unparalleled visibility into illicit financial flows, which is crucial for tracking and disrupting these criminal activities. McLouth further noted, “The sheer financial scale is substantial, amounting to hundreds of millions of U.S. dollars in cryptocurrency transactions. However, the actual human cost and suffering are immeasurably greater than any monetary figure.”
**Escort and Prostitution Networks**
Blockchain analysis suggests that highly organized syndicates are orchestrating a significant number of these transactions. While some escort and sex work services operate legally, the report identifies specific financial behaviors indicative of potential trafficking operations. McLouth pointed out that suspected networks are increasingly leveraging stablecoins and Chinese-language money laundering groups to expedite the conversion of illicit funds.
These money laundering networks predominantly operate through Chinese-language Telegram channels, facilitating the “cleaning” of illegal proceeds via cryptocurrency. In 2025 alone, an estimated $16.1 billion in illicit crypto flows were associated with these activities. Data revealed that crypto-linked international escort services were responsible for a considerable share of high-value transfers tracked by Chainalysis, with nearly half of these transactions exceeding $10,000.
Examination of online listings revealed advertisements for cross-border travel packages, multi-day “companionship” services, and tiered pricing structures, with premium VIP packages priced upwards of $30,000. The consistency and magnitude of these transfers, along with recurring payment patterns between identified wallet clusters, suggest a high degree of professionalization rather than isolated individual actions.
In contrast, crypto payments to suspected prostitution networks typically involved a greater volume of smaller transactions, predominantly ranging between $1,000 and $10,000. However, Chainalysis data indicated that these patterns were consistent with organized group activities.
**Labor Recruiters and Scam Compounds**
Another significant category identified involves “labor placement agents” who recruit individuals into scam compounds, predominantly located in Southeast Asia. These compounds are notorious for orchestrating cryptocurrency-based fraud schemes. Recruitment fees, often ranging from $1,000 to $10,000 in cryptocurrency, align with prices advertised on various Telegram channels.
The report cited examples of job postings seeking “customer service” or “data entry” personnel for positions in Cambodia or Myanmar, with promises of lucrative monthly salaries and covered travel expenses. Upon arrival, victims were allegedly coerced into perpetrating romance scams, fake cryptocurrency investment schemes, and other online frauds targeting individuals globally.
Chainalysis’s analysis of Telegram conversations revealed discussions among recruiters concerning cross-border transportation of workers, the procurement of fraudulent documents, and the coordination of payments to intermediaries. The firm also uncovered links between recruitment channels and wallets previously associated with illegal gambling platforms and money laundering services, suggesting a deep entanglement of human trafficking with broader criminal enterprises.
The scale of these scam compounds was starkly illustrated last year when the U.S. Department of Justice seized $15 billion in bitcoin from a major Cambodian operation involved in romance scams. “While we’ve seen increased enforcement actions targeting aspects of this ecosystem, particularly scam compounds, since late 2025,” McLouth observed, “the underlying networks involved in sexual exploitation and trafficking often manage to continue operating through alternative physical and digital infrastructures.”
**CSAM Vendors**
Chainalysis also tracked networks involved in the distribution of child sexual abuse material (CSAM), which exhibited distinct payment structures but displayed similarly organized financial patterns. Approximately half of CSAM-related cryptocurrency transactions were valued below $100, indicative of subscription-based models and low per-user pricing common in private chat groups or encrypted file-sharing channels.
The analysis observed a trend of funds moving from mainstream cryptocurrencies into privacy-focused assets such as Monero, as well as into instant exchange services that bypass identity verification requirements. The report further documented overlaps between CSAM subscription services and communities associated with “sadistic online extremism.”
According to the 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.”
In July 2025, Chainalysis reported its role in identifying one of the largest CSAM websites operating on the dark web, following an investigation initiated by UK law enforcement. This single operation utilized over 5,800 cryptocurrency addresses and generated more than $530,000 in revenue since July 2022.
McLouth concluded, “As cryptocurrency adoption continues to expand, its utilization for both illicit and legitimate purposes is expected to rise. In the near term, I anticipate that the use of crypto in trafficking-linked activities will persist and potentially even grow, even as enforcement efforts become more sophisticated.”
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