Crypto’s Troubling Link to Human Trafficking
Chainalysis published some rather disappointing data this week. Their 2026 Crypto Crime Report shows that cryptocurrency payments to services suspected of human trafficking jumped 85% in 2025. The company estimates that these transactions reached “hundreds of millions of dollars” across all identified services, although it is careful to note that this is likely an underestimate.
Tom McLouth, intelligence analyst at Chainalysis, called the findings “industry-defining.” He pointed out that people don’t really talk about human trafficking within the crypto ecosystem. “I think one of the main reasons is that it’s a relatively taboo subject,” he told Decrypt. “People don’t like to sit at the table and talk about CSAM and industrialized exploitation. »
Breaking Transaction Patterns
The report gives us insight into how these payments work. For Telegram-based international escort networks, almost half of transfers exceeded $10,000 in 2025. About 62% of prostitution rings’ transactions were between $1,000 and $10,000. Recruitment payments for labor trafficking operations generally fell within the same range.
Child pornography transactions were different: much smaller, with about half being under $100. But the scale remains shocking. A CSAM site has used over 5,800 cryptocurrency addresses and generated over $530,000 since July 2022. The Internet Watch Foundation has identified over 312,000 reports of child sexual abuse images in 2025 alone.
Blockchain data shows that crypto is moving from the US, UK, Brazil, Spain and Australia to Southeast Asian hubs. Many publicly available CSAM sites rely on U.S.-based hosting infrastructure, which McLouth considers strategic. “To target these victims, because there is a belief that there is more wealth in English-speaking Western states, they need to leverage the infrastructure within those states to better target these potential victims,” he explained.
Payment methods and platforms are evolving
Bitcoin remains widely used, but prostitution and labor trafficking networks increasingly rely on stablecoins. These can be converted into local currency via Chinese language money laundering networks. CSAM providers are increasingly turning to Monero due to its privacy features.
What’s interesting is how these operations have evolved. Criminal activities that once took place primarily on the dark web now also use mainstream platforms. The report reveals that traffic-related services rely on Telegram-based “collateral services” like Tudou and Xinbi, which hold crypto in escrow until transactions are confirmed.
Telegram recruitment channels linked to Southeast Asian fraud networks discuss transporting detained workers across borders. McLouth noted that Telegram has made efforts to combat crime using its app, but that some collateral services have created their own third-party apps advertised on app stores like Apple and Google Play.
A broader conversation is needed
McLouth pointed out something important: while crypto continues to play a role in these crimes, that number pales in comparison to the role of fiat currencies. “From a cryptography perspective, we want to emphasize that cryptography does not enable crime,” he said. “Crypto allows us to expose it and provides new opportunities to counter it.”
Still, the numbers don’t bode well for 2026. McLouth thinks this should spark a broader debate about enforcement and accountability. “We are not focusing on precise numbers because that could underestimate the human toll,” he said. “This is real human trafficking, real sex trafficking, real labor trafficking. These are real people who are being affected.”
The timing of the release of this report is remarkable. Crypto is facing increased scrutiny in criminal investigations, with Justice Department disclosures detailing Jeffrey Epstein’s early crypto investments and his ties to high-profile industry figures. There’s also the Bitcoin ransom demand reported in the kidnapping case involving Nancy Guthrie, mother of “Today” show anchor Savannah Guthrie.
McLouth did a good job of explaining why these large-scale crypto-related crimes are more difficult to personalize than cases linked to well-known names. “We are not in a position to say that a particular person commits a particular crime,” he stressed. “Jeffrey Epstein, as we see in the news, is a name that everyone can latch onto. But for an entire ecosystem, an entire industry, we’re not capable of doing that.”
Perhaps the most important takeaway is that blockchain transparency could actually help combat these crimes. Immutable recording of transactions creates opportunities for law enforcement that do not exist with traditional financial systems. But it requires resources, coordination, and the willingness to tackle uncomfortable topics head-on.
