Crypto Money Laundering: How Illicit Funds Move Through Blockchain

When people talk about crypto money laundering, the process of disguising illegally obtained cryptocurrency to make it look legitimate. Also known as cryptocurrency laundering, it’s one of the biggest reasons governments are cracking down on exchanges and wallets. Unlike banks, many crypto platforms don’t ask for ID, making it easy for bad actors to move stolen funds, ransomware payments, or drug money without leaving a paper trail.

That’s why AML crypto, anti-money laundering rules designed for digital assets, are now being forced on exchanges worldwide. The U.S., EU, and even countries like Nigeria and China now require crypto firms to track where coins come from and who owns them. But criminals adapt fast—they use mixers, privacy coins like Monero, and cross-chain bridges to hide the trail. Some even turn to unregulated platforms like BitxEX or DubiEx, where no one asks questions.

It’s not just about hiding cash. crypto regulations, laws that force exchanges to report suspicious activity are reshaping the whole industry. When China banned crypto in 2025, part of the reason was stopping money laundering through underground mining pools. Venezuela’s state-run mining system? Also used to launder funds. Even airdrops like SUNI or TRO are being flagged because scammers use them to clean dirty crypto. The truth? Most of these projects aren’t scams because they’re fake—they’re scams because they’re used by launderers.

What you’ll find in the posts below isn’t just news about coins or exchanges. It’s the real story of how crypto money laundering affects everything—from Bitcoin inflows to Nigerian users, from Bitfinex’s lack of support to the death of dead tokens like Quotient and PKG. These aren’t random articles. They’re pieces of a puzzle showing how finance, crime, and regulation collide in the blockchain world.