World’s money launderers are shifting to crypto, report warns

Politico Europe · Mar 2, 2026 · Collected from RSS

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News Technology UK New report sheds light on lax enforcement of money laundering powered by the tech. The researchers, based in the U.K., call on the British government to set up a new Cryptocurrency Asset Recovery Office. Jakub Porzycki/NurPhoto via Getty Images March 2, 2026 4:55 pm CET LONDON — Western governments are being urged to clamp down on cryptocurrency as new research suggests $350 billion has been laundered by criminals and hostile states using the technology in the past two decades. A new report for the Henry Jackson Society think tank, shared with POLITICO, finds that worldwide money laundering has shifted dramatically towards cryptocurrency in recent years — with the United States, Russia and Britain seeing the highest number of confirmed cases. The report draws on a database of 164 publicly identified and documented money laundering cases between 2005 and 2025. It was compiled by Alexander Browder, son of American-British financier and anti-corruption campaigner Bill Browder. Alexander Browder said that the true figure could even be “many multiples” higher than the hundreds of billions that have been identified. The study also sheds light on lax enforcement of money laundering powered by crypto. It finds that 79 percent of cases have resulted in no convictions, while only 29 percent of funds have been recovered by authorities. The researchers, based in the U.K., call on the British government to set up a new Cryptocurrency Asset Recovery Office. This would hold recovered funds to transfer back to their rightful owners. Chris Coghlan, a member of the House of Commons Treasury Select Committee told POLITICO: “The sophistication and speed of crypto currency money launderers is much higher and faster than our government’s ability to react. “As a result, our sanctions and law enforcement are in an increasingly weak position to stop it. This report highlights the need for a robust policy response to this pressing issue.” Political issue Cryptocurrency is increasingly becoming a regulatory battleground in both the U.K. and the U.S. In America, President Donald Trump has come under fire for his ties to the industry. In April last year the U.S. disbanded a Department for Justice unit tasked with investigating crypto-related fraud. In Britain, Nigel Farage’s right-wing Reform UK became the first major British political party to accept crypto donations. The British government is considering a ban on political donations through crypto. But cryptocurrency exchanges will not be regulated by the country's Financial Conduct Authority until 2027. Much of Britain’s concern about crypto comes from Russia’s recent embrace of the currency as an alternate means of financing its war economy following the invasion of Ukraine. Browder said Russia is now successfully evading sanctions using cryptocurrency — and that it is becoming a global epicenter for its illicit use. “Half of the illicit exchanges identified in the database have been based in Russia. Four out of five major ransomware groups in the database have been based in Russia. “It is the home to crypto darknet marketplaces such as Hydra — one of the largest in the world, which had processed over $5 billion in illicit funds through the sale of harmful drugs and other illegal services," he warned. Browder added that British, American and EU policymakers have so far been unable to tackle the problem: “Criminals and rogue regimes are basically running circles around U.K., U.S. and EU prosecutors.” “Criminals are able to escape without legal consequences, and victims are left without redress and adequate compensation.”