Western governments are calling for tighter regulation of cryptocurrencies following a new study that estimates criminal networks and hostile states have laundered roughly $350 billion through them over the past two decades.
A report by the Henry Jackson Society think tank says that in recent years global money laundering has increasingly shifted toward cryptocurrencies. The largest number of confirmed cases has been recorded in the United States, Russia, and the United Kingdom.
The research is based on a database of 164 publicly identified and documented money-laundering cases spanning the period from 2005 to 2025. The report was prepared by Alexander Browder—the son of American-British financier and anti-corruption activist Bill Browder.
According to Alexander Browder, the true scale may be far larger—“many times” greater than the hundreds of billions of dollars that have been identified so far.
The study also points to weak enforcement against crypto-based money laundering. In 79 percent of cases, investigations resulted in no convictions, and authorities were able to recover only 29 percent of the illicitly transferred funds.
The authors of the research, based in the United Kingdom, urge British authorities to establish a new Office for Crypto Asset Recovery, tasked with safeguarding seized funds and ensuring their subsequent return to legitimate owners.
Chris Coghlan, a member of the House of Commons Treasury Committee, said: “The complexity and speed with which crypto money launderers operate far outstrip our government’s ability to respond. As a result, sanctions regimes and law enforcement are becoming increasingly exposed. This report makes clear the need for a firm and systemic political response to this acute problem.”
Russia Has Become a Global Hub for Crypto Money Laundering—Half of All Illegal Exchanges in the Database Are Russian
Cryptocurrency is increasingly becoming a battleground for intense regulatory confrontation in both the United Kingdom and the United States.
In the United States, President Donald Trump has come under heavy criticism over his ties to the industry. In April last year, U.S. authorities disbanded a Justice Department unit responsible for investigating cryptocurrency-related fraud.
In the United Kingdom, the right-wing populist party Reform UK, led by Nigel Farage, became the first major political force to officially allow donations in cryptocurrency. At the same time, the government is considering a ban on political donations made in digital assets. Cryptocurrency exchanges, however, will not fall under the supervision of the Financial Conduct Authority until 2027.
A significant share of British concerns stems from the fact that Russia has recently been making active use of cryptocurrencies as an alternative source of financing for its war economy following the invasion of Ukraine. According to Browder, Moscow is already effectively circumventing sanctions through digital assets and is turning into one of the world’s major hubs for their illicit use.
“Half of all illegal exchanges recorded in our database were located in Russia. Four out of the five largest ransomware groups were also based in Russia. This is a country where cryptocurrency darknet marketplaces such as Hydra operate—one of the largest platforms in the world, through which more than $5 billion in illicit funds from drug trafficking and other illegal services has passed,” he warned.
Browder also noted that British, American, and European lawmakers have so far failed to mount an effective response to this challenge: “Criminals and rogue states are, in effect, running circles around prosecutors in the U.K., the U.S., and the EU.”
“Perpetrators evade legal accountability, while victims are left without legal protection or adequate compensation,” he added.