Chainalysis: Crypto Flows to Trafficking Networks Surge 85%

TheNewsCryptoPublished on 2026-02-13Last updated on 2026-02-13

Abstract

Chainalysis reports an 85% surge in cryptocurrency flows to suspected human trafficking networks last year, with a significant reliance on stablecoins and operations linked to Telegram. The data indicates these networks are becoming more professional. Approximately half of transactions tied to Telegram-based international escort services exceeded $10,000. The firm identified four main categories of illicit activity: escort services, labor placement agents connected to scam compounds, prostitution networks, and child sexual abuse material (CSAM) vendors. Blockchain's inherent transparency provides a critical tool for law enforcement to track these flows and disrupt operations. While stablecoins are preferred by escort and prostitution networks for price stability, CSAM vendors are increasingly using Layer 1 networks and Monero for laundering. Transaction sizes vary, with CSAM payments typically under $100, indicating subscription-based models. The report also notes a growing overlap with online extremism communities and increased use of privacy tools.

A crypto investigation and compliance solution platform, Chainalysis has reported that crypto flows to suspected trafficking services surged 85% last year, having stablecoin-heavy, Telegram-associated networks and leaving trackable on-chain series.

Around 50% of the transactions associated with Telegram-based international escort services surpassed $10,000, as per the report. The data shows surging professionalisation of these networks; however, blockchain transparency has come up as an investigative tool for law enforcement.

Chainalysis traced four prominent categories of suspected crypto-assisted trafficking activity: Telegram-based international escort services, labour placement agents associated with scam compounds, prostitution networks, and child sexual abuse material (CSAM) vendors.

The growth is in line with the widening of Southeast Asia-based scam compounds, online gambling operations, and Chinese-language money laundering networks, many running through Telegram, the report mentions.

Blockchain transactions leave traces forever, dissimilar to cash transactions. The overseers of law enforcement are utilising that visibility to track flows, recognise chokepoints, and disrupt operations, as per the firm.

The payment behaviour changes over categories. Telegram-associated international escort services and prostitution networks depend intensely on stablecoins, as the data reports. Previously, CSAM vendors chose Bitcoin, but now they are heavily choosing Layer 1 networks.

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Monero is highly utilised for laundering in CSAM-associated operations. The use of stablecoins indicates these networks give priority to price stability and quick off-ramping instead of the risk of asset freezes by centralised issuers, as per the report.

Transaction size data shows the structured nature of these operations. Around half of the Telegram-based escort transactions surpassed $10,000; the prostitution network remains in the $1,000 to $10,000 range, and CSAM transactions are comparatively lower, having many of them under $100.

Large transfers show organised, scaled criminal enterprises instead of isolated actors. CSAM-associated activity carries on to evolve. Subscription-based revenue models lead the sector, with payments normally under $100 every month.

The data also reveals surged overlap between sadistic online extremism communities and higher use of instant exchangers and privacy tools.

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Chainalysis: Crypto Flows to Trafficking Networks Surge 85%

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