Bitrace breaks down crypto laundering jargon used in Chinese-speaking crime networks
Bitrace, in an article republished by WuBlockchain, outlined a set of terms used in Chinese-speaking crypto money-laundering circles, focusing on "Liao," "Liao laundering," "type of Liao," and "Liao adulteration." The piece says these coded expressions are common inside organized crime networks in East and Southeast Asia and can be difficult for investigators and researchers, especially those unfamiliar with Chinese language and culture, to interpret accurately. In the article, "Liao" refers specifically to fiat funds tied to illegal activity such as fraud, extortion, online gambling, and human trafficking. In most cases, it means electronic balances sitting in bank accounts or other financial-platform accounts that are waiting to be cleaned. Bitrace says the common methods include card-to-USDT, QR-to-USDT, cash-to-USDT, and converting cash into material assets such as precious metals or other easily resold goods. The article also explains how laundering chains are priced by risk. It classifies funds by victim type and crime type, then describes "Liao adulteration," a practice in which a fund provider claims the money is low-risk while actually passing along higher-risk proceeds to cut laundering costs. Bitrace cites a Tron address frozen by Tether on Sept. 2, 2026, saying the case showed how misjudging the toxicity of funds can lead to wallet controls and losses of more than $625,000.
