The use of cryptocurrency in human trafficking activities has seen a significant surge, with transactions related to prostitution and scam operations nearly doubling in 2025. This alarming trend has unfolded largely in the open, enabled by the unregulated and global nature of crypto transactions.
Recent research by the crypto-tracing firm Chainalysis indicates that crypto-related financial exchanges for human trafficking grew by at least 85% year-on-year, amounting to hundreds of millions of dollars annually. These transactions are primarily associated with forced laborers, particularly in Southeast Asia, who are coerced into manipulating online systems for scams or trapped in prostitution rings. Chainalysis attributed the explosive growth primarily to organized sex trafficking operations, which have proliferated through platforms like Telegram, where criminal groups advertise their services.
Victims of trafficking are often lured with deceitful job offers, resulting in entrapment within hazardous conditions, such as scam compounds across Myanmar, Cambodia, and Laos. Here, they are forced to work under dire circumstances, with their passports confiscated and facing threats of violence for failing to meet job quotas. Many advertisements found on Telegram even reference potential clients seeking sexual services, some of which raise suspicions of involving minors.
These human trafficking networks frequently rely on stablecoins—cryptocurrencies tied to the US dollar—for transactions, which provide anonymity and ease of payment. Chainalysis highlighted that payments typically involve large sums, indicating the scale of organized crime, with many transactions exceeding $10,000.
While cryptocurrency has facilitated this illegal activity, it also offers a means for law enforcement to track and investigate these networks, leveraging the inherent transparency of blockchain technology. Analysts suggest that identifying vulnerabilities in centralized crypto systems and Telegram channels could enable significant disruptions to these criminal enterprises.
Moreover, the report cautioned about the increasing use of cryptocurrency in the sale of child sexual abuse materials (CSAM), underscoring the pressing need for action from platforms and payment systems to combat these heinous crimes effectively.
