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Is Crypto Becoming a Tool for Human Trafficking Networks?

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Human Trafficking Service Inflows by Asset Type

Cryptocurrency flows to services linked with suspected human trafficking surged 85% year over year in 2025.

The findings come from a new report by blockchain analytics firm Chainalysis, which highlighted that the intersection of cryptocurrency and suspected human trafficking expanded markedly last year.

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Which Crypto Assets Are Most Used in Suspected Human Trafficking Networks?

The report outlined four primary categories of suspected crypto-facilitated human trafficking. This includes Telegram-based “international escort” services, forced labor recruitment linked to scam compounds, prostitution networks, and child sexual abuse material vendors (CSAM). 

“The intersection of cryptocurrency and suspected human trafficking intensified in 2025, with total transaction volume reaching hundreds of millions of dollars across identified services, an 85% year-over-year (YoY) increase. The dollar amounts significantly understate the human toll of these crimes, where the true cost is measured in lives impacted rather than money transferred,” Chainalysis wrote.

According to the report, payment methods varied across categories. International escort services and prostitution networks used stablecoins.

“The ‘international escort services are tightly integrated with Chinese-language money laundering networks. These networks rapidly facilitate the conversion of USD stablecoins into local currencies, potentially blunting concerns that assets held in stablecoins might be frozen,” Chainalysis noted.

Human Trafficking Service Inflows by Asset Type
Human Trafficking Service Inflows by Asset Type. Source: Chainalysis

CSAM vendors have historically relied more heavily on Bitcoin (BTC). However, Bitcoin’s dominance has declined with the rise of alternative Layer 1 networks

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In 2025, while these networks continue to accept mainstream cryptocurrencies for payments, they increasingly turn to Monero  (XMR) to launder proceeds. According to Chainalysis,

“Instant exchangers, which provide rapid and anonymous cryptocurrency swapping without KYC requirements, play a crucial role in this process.”

The Dual Role of Crypto in Human Trafficking-Linked Transactions

Chainalysis noted that the surge in cryptocurrency flows to services linked with suspected human trafficking is not occurring in isolation. Instead, it mirrors the rapid expansion of Southeast Asia–based scam compounds, online casinos and gambling platforms, and Chinese-language money laundering (CMLN) and guarantee networks operating primarily through Telegram. 

Together, these entities form a fast-growing regional illicit ecosystem with global reach. According to the report, Chinese-language services operating across mainland China, Hong Kong, Taiwan, and multiple Southeast Asian countries exhibit advanced payment processing capabilities and extensive cross-border networks. 

Furthermore, geographic analysis reveals that while many trafficking-linked services are based in Southeast Asia, cryptocurrency inflows originate globally. Significant transaction flows were traced to countries including the United States, Brazil, the United Kingdom, Spain, and Australia. 

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“While traditional trafficking routes and patterns persist, these Southeast Asian services exemplify how cryptocurrency technology enables trafficking operations to facilitate payments and obscure money flows across borders more efficiently than ever before. The diversity of destination countries suggests these networks have developed sophisticated infrastructure for global operations,” the report read.

At the same time, Chainalysis stressed that blockchain transparency offers investigators deeper visibility into trafficking-related financial activity. 

Unlike cash transactions, which leave little to no audit trail, blockchain-based transfers generate permanent, traceable records. This creates new opportunities for detection and disruption that are not possible with traditional payment systems.

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Crypto World

CFTC Chair Says Agency is Ready to Oversee Entire Crypto Market

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CFTC Chair Says Agency is Ready to Oversee Entire Crypto Market

Michael Selig, US President Donald Trump’s nominee leading the Commodity Futures Trading Commission (CFTC), said the agency was prepared to oversee the entire $3 trillion crypto industry, with no timeline for Congress to pass a crucial market structure bill.

In a Wednesday statement about his first 100 days as CFTC chair, Selig said that the commission was “ready to take responsibility” for the crypto market and reiterated his claim that it was the sole regulator to oversee prediction markets.

His comments come as the US Senate considers the CLARITY Act, a crypto market structure bill that has been effectively stalled in committee amid discussions over stablecoin yield and other issues.

“The same regulatory clarity being delivered to the crypto industry is being developed for prediction markets, which can serve as powerful tools for information discovery and are regulated by the CFTC under the Commodity Exchange Act,” said Selig.

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Under Selig, who was confirmed by the Senate in December, the CFTC has adopted many policies signaling that the agency would soften its enforcement and regulation of digital assets compared to previous administrations. In March, the agency announced a memorandum of understanding with the Securities and Exchange Commission (SEC) as part of efforts to coordinate on regulation, including digital assets.

Related: Crypto exchange KuCoin agrees to $500K settlement, ending CFTC case

Although early drafts of the market structure bill suggested the legislation could give the CFTC additional authority to oversee digital assets, the SEC is expected to continue regulating cryptocurrencies it considers to be securities.

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Lawmakers pressing CFTC on insider trading claims over prediction markets

US state authorities and federal lawmakers have been targeting prediction market platforms like Kalshi and Polymarket over alleged violations of gaming laws and claims of politicians using insider information to profit.

While many of the state-level actions continue to be litigated in court, Selig has claimed that the CFTC has “exclusive jurisdiction” over prediction markets and threatened legal action against any challenges to its authority.

In a Tuesday event, CFTC enforcement director David Miller said that the agency’s position was that event contracts on prediction markets were not “gaming” but rather “swaps” that fall under its purview.

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Some lawmakers have also proposed legislation to ban elected officials with insider information from profiting from event contracts after suspicious trades on military actions involving Iran and Venezuela.

Magazine: A newbie’s guide to surviving crypto winter