Introduction to Cryptocurrency and Human Trafficking
Cryptocurrency has long been touted for its ability to facilitate smooth, international transactions with minimal regulation. Unfortunately, this has also led to its misuse in facilitating payments for human trafficking, including victims forced into scams and the sex trade, all transacted using cryptocurrencies often in plain view.
Chainalysis Findings
A recent report from the crypto-tracing firm Chainalysis revealed a dramatic rise in crypto transactions relating to human trafficking in 2025. By tracing blockchain transactions associated with these criminal activities, it was found that such transactions increased by at least 85% year on year, amounting to hundreds of millions of dollars annually. Chainalysis refrained from providing a precise figure, indicating its estimates may underrepresent the actual scope of the problem.
Exploitation on a Large Scale
According to Chainalysis analyst Tom McLouth, the rise in borderless, low-cost payments has significantly accelerated the exploitation linked to human trafficking. The company’s research identified mainly Chinese-speaking criminal groups advertising their services through the messaging platform Telegram.
Criminal Networks on Telegram
Many of the trafficking operations were traced back to Telegram channels, particularly those that serve as “guarantee” black markets. Notable examples include Xinbi Guarantee and the now-defunct Tudou Guarantee, both offering escrow services designed to protect users during transactions. Chainalysis also discovered independent Telegram channels promoting prostitution services.
Use of Stablecoins
Transactions involved primarily “stablecoins,” cryptocurrencies tied to the US dollar to minimize price fluctuation. A significant portion of the profits from these trafficking operations is laundered back into the Telegram-based guarantee markets, which handle billions of dollars in illicit revenues.
Scope of Human Trafficking
Scam compounds in Myanmar, Cambodia, and Laos, exploiting forced laborers often lured by false job offers, have become a highly lucrative sector, generating tens of billions annually. While human rights organizations estimate that hundreds of thousands have been trapped in these schemes, Chainalysis noted that the primary growth in crypto-funded trafficking stemmed from sex trafficking.
Details of the Sex Trade
Chainalysis found detailed advertisements on Telegram offering profiles of sex workers and even international services for transporting them to various countries. Alarmingly, some posts hinted at the potential trafficking of minors, with transactions predominantly flowing to entities controlling multiple women and girls. Many transactions ranged between $1,000 and $10,000, with nearly half of the international sex trafficking deals exceeding $10,000, highlighting organized criminal operations on a significant scale.
