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From carders to carders. In 2026, classic Bitcoin mixers have become too hot. OFAC is jailing Tornado Cash developers, and Lazarus Group is being exposed at every turn. So, smart money has retreated to places where regulators haven't yet had time to clean up: metaverses and NFT marketplaces.
A few million in OpenSea or Blur, a couple of fake wallets, and the magic of Wash Trading — that's how billions are laundered today. In this article, I'll show how NFTs and crypto games have become the perfect laundromat, what schemes are actually operating in 2026, and how AML systems are trying (and not always successfully) to monitor these flows.
have been laundered through NFT platforms since 2017. Another $328.6 million (0.81%) came from crypto mixers, some of which were definitely dirty. And that's only what we could trace. The rest remains in the shadows.
Why are NFTs so convenient for laundering? Three reasons:
OFAC officially recognized NFTs as "property," and now selling or transferring a token to a sanctioned person carries a fine of up to $1 million per transaction, even if you weren't aware of the connection. But that hasn't stopped money launderers — they've simply gotten smarter.
One wallet managed an average of 183 accounts to organize such cycles. On Polygon, as much as $516 million in NFT sales were attributed to wash trading, and in some collections, it accounted for up to 24-25% of the total volume.
But the real explosion occurred after the launch of the Blur marketplace. The platform introduced a loyalty program: traders received BLUR tokens for trading volume. This triggered a wave of manipulation. CryptoSlam discovered that in the first days after the launch, at least $577 million of trades on Blur were artificial — users were simply selling NFTs to themselves, inflating volume and collecting tokens. Wash trading on Blur spurred the entire market, creating the illusion of recovery. But some truly dirty money was also being laundered behind the scenes.
In 2026, the FBI conducted Operation Token Mirrors, creating a fake token to catch crypto firms engaged in wash trading. Ten people were arrested for inflating volumes and prices, and undercover agents recorded every trade. This shows that regulators are already targeting this method.
How exactly is money laundered through wash trading?
In 2024, a case of laundering $20 million in ransom money through NFT resale in The Sandbox was documented. The scheme operates on the same principle: artificial hype is created, and then a "high-priced" transaction disguises the transfer of dirty funds.
The "Metaverse Laundering" methodology includes:
Pseudonymity and decentralization make metaverses an ideal testing ground. Furthermore, KYC standards are almost nonexistent, and AML monitoring (if it exists at all) is weak.
The most high-profile case was the Axie Infinity hack. In March 2022, hackers (presumably the North Korean group Lazarus) stole $625 million from the Ronin Network bridge. The group conducted hundreds of identical transactions across multiple blockchains, using Tornado Cash to cover their tracks. Most of the stolen funds remain frozen in a single public Ethereum address and are under the surveillance of regulators and traders, who monitor every attempted transfer.
Other gaming schemes:
In 2026, the US Treasury Department proposed a "hold law" allowing for the freezing of suspicious assets for 90 days, recognizing crypto mixers not only as evil but also as a legitimate tool for privacy. This creates a new window for semi-legal schemes.
Hybrid scheme of 2026:
An interesting twist: In March 2026, the US Treasury acknowledged that mixers can be used for legitimate purposes (protecting business privacy, anonymous donations). This signals legalization, and it's likely that dirty money will be laundered in the wake of this, masquerading as "legitimate privacy."
The volume of privacy coins is also growing. At the beginning of 2026, their market capitalization reached 24 billion, and Monero was trading at 790.91. NFT mixers are only just gaining momentum.
Key vectors:
After the theft, the assets are run through several DEX swaps and mixers before being withdrawn to clean wallets. The most interesting thing is that victims often can't even trace their tokens due to their non-fungibility.
Major platforms have already begun implementing KYC for large NFT sellers, implementing algorithms to detect anomalous address clusters, and blocking suspicious P2P transactions in their applications.
A quick one-line reminder:
“NFTs and crypto games aren’t just hype, they’re a gigantic laundromat. Wash trading on Blur rakes in billions, virtual land disguises transfers. Groups like Lazarus steal $600 million through bugs, and rug pulls collect millions on empty promises. Play, buy, sell, but be aware: behind every NFT you own could be a dirty trail that will sooner or later be traced back to you if you’re not careful.”
A few million in OpenSea or Blur, a couple of fake wallets, and the magic of Wash Trading — that's how billions are laundered today. In this article, I'll show how NFTs and crypto games have become the perfect laundromat, what schemes are actually operating in 2026, and how AML systems are trying (and not always successfully) to monitor these flows.
Part 1. NFTs as the Perfect Laundromat: Why It Works
Unlike Bitcoin, where every satoshi can be traced back to the blockchain, NFTs are more complicated. Each token is unique, its price is subjective, and the market is still poorly regulated. From 2022 to 2024, NFT trading volume plummeted by 93%, but money laundering through them hasn't disappeared; it's become more sophisticated. According to Elliptic, over $8 million in illegal fundshave been laundered through NFT platforms since 2017. Another $328.6 million (0.81%) came from crypto mixers, some of which were definitely dirty. And that's only what we could trace. The rest remains in the shadows.
Why are NFTs so convenient for laundering? Three reasons:
- Subjective assessment. Who can say how much a digital image is really worth? 100 or 100 or 1 million? The difference can easily be attributed to a "lucky deal."
- Pseudonymity. Platforms only require a wallet, not a passport. Even if KYC is in place, it's easy to bypass using drop wallets.
- Wash Trading. You buy from yourself through multiple wallets, creating volume, history, and a legitimate price for dirty funds.
OFAC officially recognized NFTs as "property," and now selling or transferring a token to a sanctioned person carries a fine of up to $1 million per transaction, even if you weren't aware of the connection. But that hasn't stopped money launderers — they've simply gotten smarter.
Part 2. Wash Trading: The Art of Buying from Yourself
The most popular method of laundering NFTs is wash trading. You create several fake wallets, then one wallet sells the NFT to another at an inflated price. The money comes back to you, but "clean."One wallet managed an average of 183 accounts to organize such cycles. On Polygon, as much as $516 million in NFT sales were attributed to wash trading, and in some collections, it accounted for up to 24-25% of the total volume.
But the real explosion occurred after the launch of the Blur marketplace. The platform introduced a loyalty program: traders received BLUR tokens for trading volume. This triggered a wave of manipulation. CryptoSlam discovered that in the first days after the launch, at least $577 million of trades on Blur were artificial — users were simply selling NFTs to themselves, inflating volume and collecting tokens. Wash trading on Blur spurred the entire market, creating the illusion of recovery. But some truly dirty money was also being laundered behind the scenes.
In 2026, the FBI conducted Operation Token Mirrors, creating a fake token to catch crypto firms engaged in wash trading. Ten people were arrested for inflating volumes and prices, and undercover agents recorded every trade. This shows that regulators are already targeting this method.
How exactly is money laundered through wash trading?
- Dirty USDT/BTC from criminal activity is transferred to several controlled addresses.
- An NFT collection (for example, 10 tokens) is created on the marketplace. The cost is pennies (gas and commission).
- The first fake wallet buys the NFT from itself for 1,000, the second for 10,000, and the third for $100,000. The price gradually increases.
- The real buyer (or their last wallet) purchases the NFT for $100,000, and the money returns to the launderer — but this time legally.
- The funds are declared as "income from digital art trading" and are withdrawn through KYC-certified exchanges.
Part 3. Fake Metaverse Sales: Land and Pixels for Millions
The next level is virtual real estate. Decentraland, The Sandbox, and other metaverses allow you to buy land plots with crypto and then resell them.In 2024, a case of laundering $20 million in ransom money through NFT resale in The Sandbox was documented. The scheme operates on the same principle: artificial hype is created, and then a "high-priced" transaction disguises the transfer of dirty funds.
The "Metaverse Laundering" methodology includes:
- Buying virtual land for dirty crypto, holding it briefly, and reselling it at a premium for clean crypto.
- Decentralized layering through avatars. Funds are invested in P2P lending within DeFi games and then withdrawn as "interest income."
- Money laundering through in-game items (skins, weapons, accessories), which are then sold on third-party platforms.
Pseudonymity and decentralization make metaverses an ideal testing ground. Furthermore, KYC standards are almost nonexistent, and AML monitoring (if it exists at all) is weak.
Part 4. Crypto Games: When Pixel Monster Fights Hide Billions
Crypto games aren't just entertainment; they're a vast economy with in-game tokens, items, and land.The most high-profile case was the Axie Infinity hack. In March 2022, hackers (presumably the North Korean group Lazarus) stole $625 million from the Ronin Network bridge. The group conducted hundreds of identical transactions across multiple blockchains, using Tornado Cash to cover their tracks. Most of the stolen funds remain frozen in a single public Ethereum address and are under the surveillance of regulators and traders, who monitor every attempted transfer.
Other gaming schemes:
- CS:GO gaming skins (Skin Gambling). For centuries, they've been laundered through roulette sites, but now they're under the radar of regulators. They're increasingly turning to crypto games.
- Play-to-Earn (P2E). Players earn tokens, which they then withdraw to exchanges. Controlling multiple accounts allows for traffic to be "washed" through thousands of microtransactions.
- In-game economic loopholes. Some games allow legal mining, trading, and withdrawal of assets. Money launderers create bot farms and mix dirty crypto with game income.
In 2026, the US Treasury Department proposed a "hold law" allowing for the freezing of suspicious assets for 90 days, recognizing crypto mixers not only as evil but also as a legitimate tool for privacy. This creates a new window for semi-legal schemes.
Part 5. Laundering through crypto mixers and private coins (linked to NFTs)
In 2026, mixers are still in use. In 2025 alone, North Korean hackers stole and laundered $2.8 billion through mixers. But now they are increasingly being combined with NFTs.Hybrid scheme of 2026:
- Dirty crypto (e.g. from carding or ransoming) is sent to a crypto mixer (Tornado Cash, Wasabi Wallet) for initial mixing.
- The mixed funds are sent to several fake wallets and used to purchase proprietary NFTs at inflated prices (Wash Trading).
- "Clean" crypto from NFT sales is withdrawn through exchanges with minimal KYC or P2P platforms.
An interesting twist: In March 2026, the US Treasury acknowledged that mixers can be used for legitimate purposes (protecting business privacy, anonymous donations). This signals legalization, and it's likely that dirty money will be laundered in the wake of this, masquerading as "legitimate privacy."
The volume of privacy coins is also growing. At the beginning of 2026, their market capitalization reached 24 billion, and Monero was trading at 790.91. NFT mixers are only just gaining momentum.
Part 6. New Threats 2026: Rug Pulls, Phishing, and NFT Theft
While some launder money, others steal it. In just the 12 months ending July 2026, 100.6 million worth of NFTs were stolen. The number of incidents rose to 4,647, and the theft amounted to 23.9 million in May.Key vectors:
- Rug Pull. NFT project creators collect money and disappear. In one case, Californian promoters stole $22 million by luring thousands of gullible investors. More often, rug pull is used to raise "dirty" funds, which are then laundered through fictitious investments.
- Phishing. A single campaign can generate thousands of malicious permissions, after which the victims' wallets are emptied according to the attacker's schedule.
- Social engineering and hacking Discord. This is the most common method for stealing NFTs from hot collections.
After the theft, the assets are run through several DEX swaps and mixers before being withdrawn to clean wallets. The most interesting thing is that victims often can't even trace their tokens due to their non-fungibility.
Part 7. How to identify such schemes (for defenders)
AML specialists and crypto exchanges are gradually learning to identify these schemes. Here are the key indicators:| Indicator | What does it mean | Scheme type |
|---|---|---|
| One address controls 10+ secondary wallets | Preparing for Wash Trading | NFT laundering |
| Strange activity in the metaverses | Purchasing land without any signs of development on the site | Laundering in the metaverses |
| Cyclic transfers between wallets | Movement of funds between a pair of wallets with pauses | Common feature |
| A sharp increase in the price of a collection without objective reasons | Wash Trading Manipulation | NFT laundering |
| Layering DeFi transactions | Routing through anonymous wallets in games | Money laundering in crypto games |
Major platforms have already begun implementing KYC for large NFT sellers, implementing algorithms to detect anomalous address clusters, and blocking suspicious P2P transactions in their applications.
Part 8. OPSEC and the Checklist
If you want to legally invest in NFTs or simply protect yourself from these schemes:- Review the wallet's history. If the address has been involved in suspicious transactions or has been seen engaging in wash trading, avoid contacting it.
- Use blockchain analytics. Services like Chainalysis and Elliptic can show whether a wallet is involved in malicious transactions.
- Never approve suspicious NFT contracts. It's the easiest way to lose all your funds.
- Store your NFTs in cold wallets. Don't keep expensive assets in Metamask hot wallets.
- Don't let yourself be intimidated. If anyone threatens to disclose your data, blackmails you, or manipulates you emotionally, contact support immediately.
Summary
NFTs and crypto games have become a veritable Eldorado for money launderers. Wash trading on OpenSea and Blur, fictitious virtual real estate, the hacked crypto game Axie Infinity, rug pulls worth millions of dollars — all part of a global system for concealing illicit proceeds. By 2026, regulators were only just beginning to understand the scale of the problem, but criminals were already years ahead.A quick one-line reminder:
“NFTs and crypto games aren’t just hype, they’re a gigantic laundromat. Wash trading on Blur rakes in billions, virtual land disguises transfers. Groups like Lazarus steal $600 million through bugs, and rug pulls collect millions on empty promises. Play, buy, sell, but be aware: behind every NFT you own could be a dirty trail that will sooner or later be traced back to you if you’re not careful.”
