Rise in Crypto Payments Linked to Human Trafficking
In 2025, the use of cryptocurrency for human trafficking activities saw a dramatic increase, with Chainalysis reporting an 85% rise in such payments. This surge highlights a growing concern as criminal networks leverage digital currencies to facilitate their operations across borders.
According to Chainalysis, a U.S.-based blockchain analytics firm, most of the illicit activity was centered in Southeast Asia, where various criminal enterprises operate in unison. These include scam compounds, illegal online gambling, and Chinese-language money laundering networks. The report categorized the crypto activity into three main areas: international escort and prostitution services, labor placement agents and scam compounds, and child sexual abuse material (CSAM) vendors.
While the majority of these services are based in Southeast Asia, the customers making the payments come from diverse regions including the Americas, Europe, and Australia. This global reach underscores the extensive nature of these criminal networks.
Cybercriminals Utilize Messaging Platforms
Chainalysis noted that cybercriminals are increasingly using messaging platforms like Telegram to advertise their services, recruit victims, and coordinate payments. This shift from older darknet forums to more accessible platforms allows these networks to scale rapidly and operate with greater efficiency.
Tom McLouth, an intelligence analyst at Chainalysis, explained that the combination of messaging apps and cryptocurrency enables these networks to function with less friction. “There’s a broader migration from older darknet forums into messaging apps and semi-open Telegram ecosystems, which, combined with crypto, let these networks scale faster, run ‘customer services,’ and move money globally with much less friction,” he said.
However, the transparency of public blockchains also provides authorities with unprecedented visibility into criminal financial flows. This information is crucial for disrupting these activities. McLouth emphasized the significant financial scale of these operations, stating that the true impact goes beyond monetary figures, as it involves substantial physical harm.
Escort and Prostitution Networks
Blockchain data suggests that organized networks are behind many of the transactions related to escort and prostitution services. While some of these services operate legally, the report identified potential trafficking operations through distinct financial behaviors.
Suspected networks often rely on stablecoins and Chinese-language money laundering groups to quickly cash out. These laundering networks primarily use Chinese-language Telegram channels to “clean” illicit funds by moving them through cryptocurrency. Chainalysis estimates that these services funneled at least $16.1 billion in illicit funds in 2025.
Data showed that crypto-linked international escort services accounted for a significant share of higher-value transfers. Nearly half of the transactions exceeded $10,000, with listings advertising cross-border travel packages and multi-day “companionship” services. Chainalysis noted that the size and consistency of these transfers suggest professionalized operations rather than isolated individuals.
Labor Recruiters and Scam Compounds
Another major category involved “labor placement agents” who recruit individuals into scam compounds, usually in Southeast Asia. Recruitment fees typically range from $1,000 to $10,000 in cryptocurrency, matching the prices advertised on Telegram channels. Examples cited in the report include posts seeking “customer service” or “data entry” workers for jobs in Cambodia or Myanmar, promising high salaries and covering travel costs.
Once recruited, victims were allegedly forced to conduct romance scams, fake cryptocurrency investment schemes, and other online frauds targeting victims abroad. Chainalysis also identified links between recruitment channels and wallets associated with illegal gambling platforms and money laundering services, indicating broader criminal enterprises.
The scale of these compounds was highlighted when the U.S. Department of Justice seized bitcoin worth about $15 billion from a massive Cambodian scam center running romance scams.
CSAM Vendors
Chainalysis also tracked networks involved in child sexual abuse material (CSAM), which operated under different crypto payment structures but reflected growing levels of organization. While about half of CSAM-related crypto transactions were below $100, this price point reflected individual payments within subscription-based models in private chat groups and encrypted file-sharing channels.
The blockchain tracker observed these funds moving from mainstream cryptocurrencies into privacy-focused assets like Monero and instant exchange services that require no identity verification. The report documented overlaps between CSAM subscription services and “sadistic online extremism” communities.
“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 stated.
In July 2025, Chainalysis helped identify one of the largest CSAM websites operating on the dark web following a UK law enforcement lead. That single operation utilized over 5,800 cryptocurrency addresses and generated more than $530,000 in revenue since July 2022.
“In general, as crypto adoption grows, its use for both illicit and legitimate purposes will increase,” said McLouth. “In the near term, I don’t expect crypto use in trafficking-linked activity to go away, if anything, I expect it to keep growing even as enforcement gets better.”