Sharp increase in illicit crypto activity
Cryptocurrency payments linked to suspected human trafficking services jumped 85% in 2025, according to a new study from blockchain analytics firm Chainalysis. The total volume reached what they describe as “hundreds of millions” of dollars, which is a pretty significant number when you think about it.
Most of this activity appears to be linked to groups operating in Southeast Asia, although the report does not specify the exact countries. What is particularly concerning is that almost half of the transactions from Telegram-based “international escort” services were for amounts over $10,000. This suggests that these are not small, isolated payments but rather substantial financial flows.
Payment models and methods
Researchers have discovered interesting patterns in the financial functioning of these networks. Most payments in human trafficking networks have been made using stablecoins, which makes sense when you consider their price stability and relative ease of use. But other categories of illicit activity showed different preferences.
Vendors selling child pornography, for example, tend to use more Bitcoin or privacy coins like Monero for laundering purposes. The report specifically mentions that “instant exchangers, which enable rapid and anonymous exchange of cryptocurrency without KYC requirements, play a crucial role in this process.”
These findings highlight how trafficking networks – and illicit actors in general – are increasingly turning to cryptocurrencies to quickly move funds and operate across borders. Chainalysis examined several types of activities, including escort services, forced labor recruitment agents, prostitution, and vendors selling child pornography. Payments spanned multiple regions, including the Americas, Europe and Australia.
The Challenge and Opportunity of Inquiry
This is where things get a little more complex. Despite the increase in illicit activities, the use of cryptocurrencies could actually help investigators in some ways. The transparency of blockchain technology makes it easier for authorities to trace funds and identify patterns.
The report notes that “standardized pricing models create identifiable transaction patterns that investigators and compliance teams can use to detect suspicious activity at scale.” So even though criminals use cryptography for its perceived anonymity, they also leave digital footprints that can be analyzed.
I think this creates something of a paradox: the same characteristics that attract illicit actors (speed, borderless transactions) also create opportunities for detection. It’s of course not perfect, but it’s better than trying to track cash transactions across multiple jurisdictions.
Look forward to
Chainalysis suggests that trafficking networks will likely continue to evolve their tactics as they adapt to increased surveillance. They will likely continue to find new ways to hide their activities and move money.
But the company also believes that better pattern recognition tools and more effective cooperation between cryptocurrency companies and authorities could help detect and disrupt these operations. The key seems to be staying ahead of the curve: understanding how these networks work financially and developing tools to detect suspicious patterns before money moves too far through the system.
It really is a difficult balance. On the one hand, you have legitimate concerns about privacy and financial freedom. On the other hand, there is the undeniable reality that these technologies are being exploited for terrible purposes. The challenge for regulators, law enforcement, and the crypto industry will be finding ways to address the latter problem without completely compromising the former.
Perhaps the most important takeaway is that this isn’t just a technology problem: it’s a human problem related to using new financial tools. The solutions will have to be as multiple as the problem itself.
