‘New frontier’ of crypto laundering involves cross-chain bridges and DEXs: Elliptic

New research from blockchain analytics and crypto compliance firm Elliptic has revealed the extent to which cross-chain bridges and decentralized exchanges (DEXs) have removed barriers for cybercriminals.

In an Oct. 4 report titled “The state of cross-chain crime,” Elliptic researchers Eray Arda Akartuna and Thibaud Madelin took a deep dive into what they described as “the new frontier of crypto laundering.” The report summarized that the free flow of capital between crypto assets is now more unhindered due to the emergence of new technologies such as bridges and DEXs.

Cybercriminals have been using cross-chain bridges, DEXs and coin swaps to obfuscate at least $4 billion worth of illicit crypto proceeds since the beginning of 2020, it reported.

Around a third of all stolen crypto, or roughly $1.2 billion, from the incidents surveyed, was swapped using decentralized exchanges.

Delving further into the details, the report noted that more than half of the illicit funds it identified were swapped directly through two DEXs, Curve and Uniswap, with the 1inch aggregator protocol coming a close third.

A similar amount of around $1.2 billion has been laundered using coin swap services which allow users to swap assets within and across different networks without having an account.

“Many are advertised on Russian cybercrime forums and cater almost exclusively to a criminal audience,” it noted.

Sanctioned entities are increasingly turning to such technologies in order to move funds and carry out cyber-attacks, according to Elliptic:

“Wallets connected to groups eventually sanctioned by the United States — including those used by North Korea to perpetrate multi-million-dollar cyberattacks — have laundered more than $1.8 billion through such techniques.”

In a June report on digital asset risks, global money laundering and terrorist financing watchdog, the Financial Action Task Force (FATF), also fingered cross-chain bridges and “chain hopping” as a high risk.

Related: $2B in crypto stolen from cross-chain bridges this year: Chainalysis

The Ren bridge was mentioned as a top choice for crypto laundering with the vast majority of illicit assets, or more than $540 million, passing through it.

“Ren has become particularly popular with those seeking to launder the proceeds of theft,” it said.

One potential solution to mitigate crypto theft was proposed by Stanford researchers last month. It involves an opt-in token standard called ERC-20R that provides the option to reverse a transaction within a set time period.

Related Posts

pure bitcoin c213ce83f6e48a5c90ab8972e17de710

How to Insure Your Bitcoin Cold Storage: Policy Comparison and Cost

Introduction: The Hidden Risk of Cold Storage When it comes to safeguarding your Bitcoin, cold storage is often hailed as the gold standard. Hardware wallets, paper wallets, and even air-gapped…

Read more
633f77aa e12c 49b0 8f83 909431072a30 1

Best Signal-Provider Platforms for Professional Crypto Day Traders

  In the fast-moving world of cryptocurrency day trading, every second counts. One strong signal can be the difference between a profitable move and a costly error. That’s why professional…

Read more
image 15 1024x852 1

Top 7 Crypto Portfolio Tracker Apps for 2025 (Ranked by Fees, Sync Speed & Tax Reporting Accuracy)

Cryptocurrency investing has matured from a speculative hobby into a full-blown financial strategy. With more tokens, chains, and DeFi projects entering the market daily, managing your crypto portfolio manually just…

Read more
AdobeStock 193582713 e1651154504351

Why Every Crypto Investor Needs a Mobile Wallet with Fingerprint or Face ID – Top Picks for 2025

  The rise of digital assets has revolutionized the financial landscape, giving birth to a decentralized economy that’s open 24/7, borderless, and continuously evolving. As this revolution marches forward into…

Read more
69528071a8144fef7711fadbf034910a

Crypto Security 101: How to Detect Fake Wallet Apps, Airdrops & Phishing Links Before It’s Too Late

Crypto Security 101: How to Detect Fake Wallet Apps, Airdrops & Phishing Links Before It’s Too Late In a world where blockchain is redefining how we transact, invest, and store…

Read more
Benefits of Using a Cold Storage Wallet 1140x855 1

Best Cold Wallets for Storing Bitcoin Safely in 2025

Cold Wallets have become the gold standard for long-term Bitcoin storage, combining air-gapped security with user control. As the crypto space matures, 2025 brings new entrants and refinements to established…

Read more

Leave a Reply

Your email address will not be published. Required fields are marked *