Moving to Social Media

Chinese-language money-laundering networks have significantly expanded their operations, leveraging platforms such as Telegram, a messaging app based in Dubai. Telegram serves not only as a means for buyers and sellers of laundering services to connect but also as an escrow hub.

The emergence of these networks began early in 2020 during the COVID-19 pandemic, with services like money mules, over-the-counter (OTC) desks, and gaming sites becoming prevalent. Over time, these decentralized platforms have largely replaced centralized crypto exchanges, which have strengthened their security measures.

The international nature of these scams complicates law enforcement efforts further, as funds move across borders. In 2024, China reported prosecuting more than 3,000 individuals for crypto money laundering. International collaboration has shown some success; in October, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and Financial Crimes Enforcement Network (FinCEN), working with the UK’s Foreign, Commonwealth, and Development Office, dismantled the Huione Group, which was responsible for laundering approximately $4 billion from digital currency scams.

Anatomy of a Scam

Just this week, the U.S. Justice Department sentenced Jingliang Su, a Chinese national, to 46 months in prison for his role in money-laundering operations targeting Americans. Criminals first contacted victims via social media, text messages, and online dating services, building trust before steering them into fraudulent crypto investments through fake websites that mimicked legitimate trading platforms.

Ultimately, over $36.9 million from U.S. bank accounts was transferred to a single account at Deltec Bank in the Bahamas. The funds were then converted into Tether by Deltec and transferred to a digital wallet controlled by Su’s group in Cambodia.