Cryptocurrency payments to suppliers of fentanyl precursor chemicals began declining in mid-2023, months before a subsequent drop in overdose deaths, suggesting blockchain data could provide early signals of illicit drug market disruptions. According to a new report, crypto flows to suspected human trafficking services also surged 85% in 2025, with activity concentrated in Southeast Asian networks involving scam compounds and online exploitation.
A significant drop in on-chain payments to vendors of chemicals used in fentanyl production preceded a decline in overdose deaths by several months. This pattern suggests tracking blockchain payments could serve as an early indicator of changes in synthetic opioid supply.
The same report documented an 85% year-over-year increase in cryptocurrency flows to suspected human trafficking networks in 2025. This activity is largely concentrated in Southeast Asia, where trafficking overlaps with scam compounds and money laundering networks operating on platforms like Telegram.
The firm identified four primary categories of suspected crypto-facilitated trafficking. These include Telegram-based “international escort” services, “labor placement” agents for scam compounds, prostitution networks, and vendors of child sexual abuse material.
Payment methods vary significantly between these illicit operations. Escort and prostitution networks rely predominantly on stablecoins, while CSAM vendors increasingly use privacy-focused assets and instant exchangers to avoid detection.
Transaction data reveals the scale of these operations. Over 48% of transfers linked to certain escort services exceeded $10,000, indicating organized activity, while payments for labor recruitment typically fell between $1,000 and $10,000 per transfer.
Some services are integrated with money laundering networks that rapidly convert stablecoins into local currencies. In the CSAM sector, operators often use subscription models charging less than $100 monthly to generate recurring revenue.
