Criminals Launder $7 Billion Through Crypto Platforms
A recent report by blockchain analytics platform Elliptic reveals that criminals, including the notorious North Korean hacking group Lazarus, have laundered around $7 billion of illicit cryptocurrencies using decentralized exchanges (DEXs), cross-chain bridges, and coin swap services. The report also highlights that sanctioned entities and terrorists now hold over 80 crypto assets across 26 different blockchains.
Exceeding Predictions: $7 Billion Laundered
The previous edition of the State of Cross-chain Crime report predicted that the amount laundered through DEXs, bridges, and coin swaps would reach $6.5 billion by the end of 2023 and $10.5 billion by 2025. However, Elliptic’s recent analysis found that the current figure has already surpassed predictions, with $7 billion laundered. An additional $2.7 billion was discovered to have been laundered between July 2022 and July 2023.
Lazarus Group: Largest Source of Illicit Funds
The Lazarus Group is responsible for laundering $900 million through cross-chain bridges, making them the largest source of all illicit funds in this category and the third largest for all cross-chain crime. Criminals are now using more complex methods such as derivatives trading and limit orders to obscure their laundering activities.
Tom Robinson, co-founder and chief scientist at Elliptic, stated that cross-chain crime continues to grow as bad actors exploit decentralized exchanges (DEXs), cross-chain bridges, and coin swap services.
Rise in Hacks and Scams
As the amount of crypto assets being laundered through these platforms increases, bad actors are also focusing on theft through hacks, exploits, and scams. In September alone, approximately $332 million was lost to hackers and scammers, with a single attack resulting in losses of around $200 million.
Hot Take: Criminals Launder Billions Through Crypto Platforms
The latest report from Elliptic reveals the scale of money laundering happening within the crypto space. Criminals, including the Lazarus Group, have managed to launder around $7 billion of illicit cryptocurrencies using decentralized exchanges, cross-chain bridges, and coin swap services. This exceeds previous predictions and highlights the growing challenge faced by authorities in combating cross-chain crime. As criminals become more sophisticated in their methods, it is crucial for blockchain analytics platforms and law enforcement agencies to stay ahead to mitigate risk and bring transparency to the crypto ecosystem.
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