SKN | Crypto Use in Human Trafficking Networks Surged 85% in 2025, Chainalysis Says

Key Points

• Crypto flows to suspected human trafficking networks rose 85% in 2025, according to Chainalysis.

• Transaction volumes reached hundreds of millions of dollars, largely tied to Southeast Asia–based operations.

• Chainalysis argues blockchain transparency can aid law enforcement in identifying and disrupting trafficking networks.

Cryptocurrency flows linked to suspected human trafficking networks increased sharply in 2025, underscoring both the growing use of digital assets in illicit markets and the expanding role of blockchain analytics in combating financial crime.

In a new report, Chainalysis said crypto transaction volumes tied to suspected trafficking services surged 85% over the year, reaching “hundreds of millions of dollars across identified services.” The firm noted that many of these networks are concentrated in Southeast Asia and closely aligned with scam compounds, online casinos, and Chinese-language money-laundering operations.

The findings reflect a broader evolution in criminal finance, as traffickers increasingly leverage digital assets for cross-border transactions that bypass traditional banking controls.

Stablecoins Dominate Payment Channels

Chainalysis identified a range of crypto-facilitated trafficking activity, including Telegram-based international escort services, labor placement agents that abduct and force individuals to work in scam compounds, prostitution networks, and vendors distributing child sexual abuse material.

Payment methods varied across categories. International escort services and prostitution networks were found to operate almost exclusively using stablecoins, reflecting their price stability and global liquidity. Stablecoins, often pegged to the U.S. dollar, allow traffickers to avoid the volatility associated with major cryptocurrencies such as bitcoin while maintaining ease of transfer.

The report highlights how illicit networks have adapted to digital payment infrastructure, selecting assets that optimize operational efficiency and reduce financial friction.

Blockchain as a Double-Edged Sword

Despite the growth in crypto-linked trafficking activity, Chainalysis emphasized that blockchain technology’s transparency creates investigative advantages not available with cash-based systems.

“Unlike cash transactions that leave no trace, the transparency of blockchain technology provides unprecedented visibility into these operations,” the company said.

By analyzing wallet clusters, transaction timing, and conversion patterns, compliance teams and law enforcement agencies can identify behavioral signals associated with trafficking networks. These include large, recurring payments to labor placement services, wallets interacting with multiple categories of illicit platforms, and repeated stablecoin conversion flows.

Such patterns can serve as digital fingerprints, enabling authorities to trace funds and target chokepoints such as centralized exchanges or online marketplaces.

Law Enforcement Actions Increase

The report comes amid growing international cooperation aimed at dismantling trafficking and exploitation networks. Chainalysis pointed to several enforcement successes in 2025, including German authorities’ takedown of a child sexual exploitation platform. According to the firm, blockchain analysis played a role in supporting that investigation.

Authorities have increasingly relied on forensic blockchain tools to trace illicit funds, freeze assets, and identify network operators. Unlike traditional offshore cash flows, digital asset movements are permanently recorded, allowing retrospective analysis even years after transactions occur.

Structural Implications

The 85% increase in crypto flows to suspected trafficking networks highlights the tension at the heart of digital asset markets. While cryptocurrencies offer efficiency and financial access, they also provide new rails for organized crime.

At the same time, the immutable and transparent nature of public blockchains may ultimately undermine such misuse. As analytics capabilities advance, traffickers operating on-chain may face greater long-term exposure compared to those relying on opaque cash systems.

The findings reinforce a broader trend: illicit actors continue to adapt to emerging financial technologies, but so do regulators and law enforcement agencies. The balance between anonymity, transparency, and enforcement will remain central as digital assets further integrate into the global financial system.