Crypto-Funded Human Trafficking Is Exploding

Article Date: 2026-02-12T13:00:00+00:00 | Source: WIRED

Summary

Chainalysis research, reported by WIRED, finds that cryptocurrency-funded human trafficking surged in 2025 — rising by at least 85% year over year. The measurable total is in the hundreds of millions of dollars annually, a conservative estimate that likely undercounts the true scale.

The report identifies two core criminal uses of crypto: organised sex-trafficking networks and scam compounds that coerce forced labour in Southeast Asia. Traffickers rely on Telegram channels as marketplaces and on stablecoins (notably Tether and USDC) to move payments. Some operations advertise services and victims openly in Chinese-language Telegram posts, including offers that suggest trafficking of minors.

Chainalysis also documents crypto’s role in sales of child sexual abuse material (CSAM), where Bitcoin and privacy coins like Monero are used to pay and launder proceeds. The research highlights both the harms and an unsettling flip side: blockchain traceability creates new visibility that law enforcement could exploit if it moves faster.

Key Points

Crypto transactions linked to human trafficking increased by at least 85% in 2025, per Chainalysis.
Most transactions for trafficking use stablecoins (eg. Tether, USDC) to avoid volatility and simplify cross-border payments.
Telegram channels — including “guarantee” escrow markets — serve as advertising, escrow and cash-out hubs for traffickers.
Growth in measurable crypto-funded trafficking is driven mainly by organised sex-trafficking networks, with many transactions in the $1,000–$10,000 range and numerous international deals exceeding $10,000.
Scam compounds in Myanmar, Cambodia and Laos use crypto payments to buy forced labourers and incentivise recruiters with sizeable bounties.
CSAM sales and laundering still use traceable coins like Bitcoin and privacy coins like Monero; the low price of some CSAM transactions underscores accessibility and harm.

Why should I read this?

Because this isn’t an abstract problem — crypto is actively greasing the wheels of large-scale exploitation right now. It’s ugly, it’s growing fast, and the report shows where the money flows so policymakers and platforms can actually do something about it. We skimmed the heavy data so you don’t have to — but don’t skip the details if you care about real-world harms enabled by tech.

Context and Relevance

This story sits at the intersection of crypto regulation, platform moderation and transnational organised crime. As stablecoins and messaging apps enable low-friction, cross-border payments and marketplaces, organised traffickers scale more quickly. At the same time, blockchain traceability gives investigators new avenues to follow funds — particularly if regulators pressure centralised stablecoin issuers and platforms that host markets and escrow services.

For professionals in security, policy, financial compliance and platform moderation, the report highlights concrete intervention points: freeze suspicious stablecoin accounts, disrupt guarantee-market cash-out rails, and take targeted enforcement actions against prolific channels on messaging services.

Author’s note

Punchy: this is serious and immediate. The combination of public adverts on Telegram and crypto rails means this trade is not hidden in the deep web — it’s increasingly auditable. Read the full piece and the Chainalysis report if you want to understand where enforcement can actually make a dent.