The use of cryptocurrency in human trafficking, particularly for prostitution and scam operations, increased nearly twofold in 2025, with estimates indicating transactions now amount to hundreds of millions of dollars annually. According to research by the crypto-tracing firm Chainalysis, these transactions leverage cryptocurrency’s low-regulation, borderless nature, facilitating the exploitation of victims in plain sight.
The analysis revealed that the majority of these crypto-powered trafficking operations are managed by Chinese-speaking criminal syndicates that advertise their services on platforms like Telegram. Chainalysis noted the substantial rise in transactions related to forced labor and sex trafficking, highlighting the disturbing trend where opportunistic groups exploit the anonymity offered by stablecoins—cryptocurrencies linked to the dollar—such as Tether and USDC.
Operations particularly concentrated in Southeast Asia, including scam compounds in Myanmar, Cambodia, and Laos, are notorious for ensnaring victims through fraudulent job offers. These scams reportedly generate tens of billions in annual revenue, overshadowing almost all other forms of cybercrime, with estimates suggesting hundreds of thousands of victims are involved. While the report shows an explosive growth in transactions tied to sexual exploitation, it highlights a disturbing prevalence of purchases involved in sex trafficking, with descriptions of services advertised openly.
A notable aspect of this criminal activity is that many transactions involve large sums of money. Chainalysis recorded a significant percentage of payments ranging from $1,000 to upwards of $10,000, indicating the scale of organized crime networks entrenched in human trafficking.
Interestingly, while cryptocurrencies have evidently fueled the growth of human trafficking, they also allow for greater transparency and tracking of these transactions compared to cash-based systems. Chainalysis suggests that law enforcement can leverage the unique characteristics of cryptocurrencies to target vulnerable points within these networks.
Telegram and cryptocurrency platforms like Tether have come under scrutiny for enabling these operations despite their stated policies against such activities. Erin West, a former prosecutor and head of an anti-scam organization, criticized both platforms for not taking sufficient action against traffickers, arguing that their knowledge of ongoing criminal activities implicates them in the exploitation narratives.
In response, Tether has claimed a zero-tolerance policy toward the misuse of its technology for crimes like human trafficking and mentioned its cooperation with law enforcement across the globe to combat such illicit activities. Meanwhile, Telegram asserts its commitment to removing harmful content, emphasizing the challenging regulatory landscape it must navigate due to users under strict financial controls in places like China.
Overall, the intertwining of cryptocurrency and human trafficking underscores a pressing issue requiring urgent action from both technology platforms and law enforcement to effectively combat these horrific practices and protect vulnerable populations.
