LONDON — A new report warns that Western governments must take decisive action against cryptocurrency as an alarming $350 billion has allegedly been laundered through this digital medium over the last two decades. Conducted by the Henry Jackson Society think tank and shared with POLITICO, the study indicates a noticeable shift in global money laundering trends toward cryptocurrency, with the United States, Russia, and the United Kingdom recording the highest number of confirmed incidents.
The report is based on an extensive database that tracks 164 publicly identified money laundering cases spanning from 2005 to 2025. This research was spearheaded by Alexander Browder, the son of prominent financier and anti-corruption advocate Bill Browder. Browder emphasized that the actual amount laundered could be “many multiples” higher than the current estimates.
Concerns over enforcement and recovery
One of the most striking findings of the report is the alarming ineffectiveness of current enforcement measures against cryptocurrency-related money laundering. The data reveals that 79 percent of the documented cases have led to no convictions, while authorities have only managed to recover 29 percent of the laundered funds.
In response to these findings, researchers from the U.K. are advocating for the establishment of a new Cryptocurrency Asset Recovery Office. This proposed office would be responsible for holding recovered assets and facilitating their return to rightful owners.
Chris Coghlan, a member of the House of Commons Treasury Select Committee, stated: “The sophistication and speed of crypto currency money launderers is much higher and faster than our government’s ability to react.”
The political landscape and challenges ahead
As cryptocurrency continues to gain traction, it has become a contentious issue in both the U.K. and the U.S. In the United States, former President Donald Trump has faced scrutiny for his connections to the cryptocurrency sector. Last year, the U.S. government disbanded a Department of Justice unit that was dedicated to investigating crypto-related fraud.
In the U.K., the political climate surrounding cryptocurrency is evolving, with Nigel Farage’s Reform UK party becoming the first major British political party to accept cryptocurrency donations. However, there are discussions about banning political contributions made through cryptocurrencies, and the nation’s Financial Conduct Authority will not begin regulating cryptocurrency exchanges until 2027.
Much of the apprehension in the U.K. stems from Russia’s recent adoption of cryptocurrency as a workaround to finance its war efforts in Ukraine. Browder points out that Russia is effectively circumventing sanctions through the use of cryptocurrency, establishing itself as a central hub for illicit activities.
Browder stated, “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.”
He further warned that Russia hosts significant crypto darknet marketplaces, including Hydra, which is known to have processed over $5 billion in illicit transactions involving dangerous drugs and other illegal services. Browder criticized the inability of British, American, and EU policymakers to adequately address the issue, asserting, “Criminals and rogue regimes are basically running circles around U.K., U.S. and EU prosecutors.”
As a result, criminals are escaping legal repercussions, while victims are often left without recourse or fair compensation.