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

2026-02-16 05:48:05

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Cryptocurrency payments to suspected human trafficking rings rose 85% in 2025, with hundreds of millions of transactions tracked on public blockchain networks, according to a new report from Chainalysis.

The US-based blockchain analytics firm said most of the activity is linked to the expanding criminal ecosystem in Southeast Asia, where fraudulent vehicles, illegal online gambling operations and… Money laundering networks in Chinese They work in perfect harmony.

Cryptocurrency activity by human traffickers largely falls into three categories: international escort and prostitution services, the cryptocurrency tracker said; Labor recruitment agents and fraudulent vehicles; and sellers of child sexual abuse material (CSAM).

While data on the blockchain shows that most services were focused in Southeast Asia, customers sent payments from across North and South America, Europe and Australia, highlighting the global scale of operations.

Chainalysis also found that cybercriminals are increasingly relying on messaging platforms like Telegram to advertise their services, recruit victims, and coordinate payments.

“There is a broader migration from legacy darknet forums to messaging apps and Telegram’s semi-open systems, which, combined with cryptocurrencies, allows these networks to scale faster, run ‘customer services’, and move money globally with far less friction,” said Tom McLouth, Chainalysis intelligence analyst.

The company added that public blockchain transparency also provides what it calls “unprecedented visibility” into criminal financial flows, which blockchain trackers rely on to disrupt activity.

“The main takeaway is that the real financial scale is large, at least hundreds of millions of dollars from cryptocurrency transactions, and the physical damage is greater than any dollar figure,” McLouth said.

Escort and prostitution networks

Blockchain activity suggests that highly organized networks were behind many of the transactions.

While some escort and sex work services operate legally, the report said potential trafficking operations can be identified through distinct financial behaviors.

Suspected networks, in particular, are increasingly relying on stablecoins and Chinese-speaking money laundering groups to quickly disburse funds, McLouth said.

These money laundering networks operate primarily through Chinese-language Telegram channels to help criminals “clean” illicit funds by moving them via cryptocurrencies, with an estimated $16.1 billion in illicit crypto flows in 2025.

Cryptocurrency-linked international escort services also account for a significant share of higher-value transfers tracked by Chainalysis, with nearly half of transactions exceeding $10,000, the data showed.

The listings reviewed by researchers advertised cross-border travel packages, multi-day “companionship” services and tiered pricing structures, with VIP packages priced above $30,000.

The volume and consistency of these transfers, along with recurring payment patterns between wallet groups, point to professional operations rather than isolated individuals, Chainalysis said.

Cryptocurrency payments to suspected prostitution networks showed a distinct set of smaller transactions than those for escort services, mostly ranging between $1,000 and $10,000. However, according to Chaina Analysis, the data was consistent with organized groups.

Labor recruitment companies and fraudulent vehicles

Another major category includes so-called “labor recruitment agents” who recruit individuals into fraudulent pools, usually in Southeast Asia, and are known to carry out cryptocurrency-based schemes.

The report said recruitment fees typically range from $1,000 to $10,000 in cryptocurrency, which is consistent with prices advertised on Telegram channels.

Examples cited in the report include jobs seeking “customer service” or “data entry” workers for jobs in Cambodia or Myanmar, promising high monthly salaries and covering travel costs.

Once recruited, victims are allegedly forced into romance scams, fake cryptocurrency investment schemes and other online scams targeting victims abroad.

In some of the Telegram conversations analyzed by Chainalysis, recruiters discussed transporting workers across borders, arranging forged documents, and coordinating payments to intermediaries.

The company also identified links between recruitment channels and wallets previously linked to illegal gambling platforms and money laundering services, suggesting that human trafficking activity was intertwined with wider criminal enterprises.

The scale of these compounds was highlighted last year when the US Department of Justice seized $15 billion in bitcoin from a massive Cambodian scam center that was running romance scams.

“Since late 2025, we have seen more enforcement around parts of this ecosystem, particularly fraud vehicles, but the underlying sexual exploitation and trafficking networks can often continue to operate across alternative infrastructure, both physical and digital,” McLouth said.

CSAM Material Vendors

Chainalogy also tracked networks involved in child sexual abuse material (CSAM), which operated under different payment structures but showed similarly structured financial patterns.

Nearly half of the crypto transactions associated with CSAM were less than $100, reflecting subscription-based models and lower prices per user in private chat groups or encrypted file-sharing channels.

Chainalysis noted that this money is moving from mainstream cryptocurrencies to privacy-focused assets such as Moneroas well as in instant exchange services that do not require identity verification.

The report also documented the overlaps between CSAM subscription services and “online sadistic extremism” communities.

“these [sadistic online extremism] “Groups specifically target and manipulate minors through sophisticated sextortion schemes, with the resulting content monetized through cryptocurrency payments, perpetuating cycles of abuse,” the report said.

In July 2025, Chainalysis said it had assisted in the identification One of the largest CSAM sites operating on the dark web Following the UK’s law enforcement leadership.

This single operation has used over 5,800 cryptocurrency addresses and generated over $530,000 in revenue since July 2022.

“In general, as adoption of cryptocurrencies increases, their use for both illicit and legitimate purposes will increase,” McLouth said. “In the near term, I do not expect the use of cryptocurrencies for trafficking-related activities to disappear, and if anything, I expect it to continue to grow even as implementation improves.”