Stablecoins drive 85% 2025 surge in trafficking flows

What to Know:

- Crypto trafficking rose 85% in 2025, reaching hundreds of millions.
- Stablecoins and escrow services ease cross-border payments, scaling criminal networks.
- Blockchain traceability aids investigations; DOJ refocuses on prosecuting trafficking harms.
Analysis: Why stablecoins and Telegram escrow scale illicit payments

Crypto human trafficking rose roughly 85% year over year in 2025, reaching hundreds of millions of dollars in flows, based on data from Chainalysis. The analysis spans sex trafficking, forced labor linked to scam compounds, and child sexual abuse material, reflecting a broadening criminal footprint.

Stablecoin payments and Telegram-style guarantee or escrow services reduce cross-border friction and help networks scale, the report indicates. Yet crypto’s traceable ledgers also create investigative leads when paired with blockchain analytics and coordinated compliance action.

Reflecting that duality, the U.S. Department of Justice disbanded the National Cryptocurrency Enforcement Team and redirected focus toward prosecuting criminal conduct such as trafficking, according to the Associated Press. The recalibration suggests prioritizing cases where digital assets facilitate clear harms over purely regulatory disputes.

Across categories, networks route proceeds via stablecoin payments, leverage intermediated “guarantee” or escrow arrangements on messaging apps, and engage cross-border money brokers. These patterns align with flows tied to Southeast Asian exploitation hubs and related laundering infrastructure.

In the child sexual abuse material economy, the Internet Watch Foundation reported 312,030 reports in 2025 and shares any identified payment information with law enforcement to support investigations. This highlights how on-chain evidence can complement victim-centered takedowns while avoiding conflation with consensual adult services.

That visibility has intensified debate over platform responsibility, with advocates urging messaging platforms and stablecoin issuers to restrict abusive accounts or freeze assets where abuse is evident. “Why are Telegram and Tether OK with making money from the exploitation of humans? They know this is happening … They allow these criminal operations to continue to use their tools,” said Erin West, former prosecutor with Operation Shamrock.

At the state level, Manhattan District Attorney Alvin Bragg has urged licensing, strong KYC, and penalties for unlicensed crypto businesses to close enforcement blind spots, as reported by Decrypt. In parallel, investigators increasingly rely on blockchain analytics to trace flows, seize funds, and pursue restitution where possible.

At the time of this writing, Coinbase Global (COIN) traded near $161.04, up about 10.21% intraday, per delayed Nasdaq real-time data. This market context is background only and not related to specific enforcement matters.

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