Illicit or High-Risk Funds Laundered Through Cross-Chain Protocols Reaches $7 Billion: Blockchain Research Firm
A recent press release from blockchain research firm Elliptic reveals that the amount of funds laundered through cross-chain and cross-asset services has reached a staggering ten-figure sum. In July of this year, the total funds laundered hit $7 billion, surpassing the previously projected figure of $6.5 billion by the end of the year.
The report states that the Lazarus Group, a North Korean hacking organization, is responsible for nearly 13% of all funds laundered through cross-chain and cross-asset protocols. They have laundered over $900 million through these methods, making them the third-largest source of cross-chain crime overall.
Over a one-year period, approximately 39% of illicit or high-risk funds were laundered through these protocols, amounting to $2.7 billion between July 2022 and July 2023.
Sophistication of Cross-Chain Crime
Elliptic notes that criminals are becoming more sophisticated in their cross-chain crime activities. They are using complex methods such as derivatives trading and limit orders to obfuscate their laundering activities.
Last year, Elliptic predicted that illicit or high-risk funds laundered through cross-chain bridges, decentralized exchanges, and coin-mixing services could reach $10.5 billion by 2025.
Hot Take: The Growing Concern of Cross-Chain Crime
The surge in illicit or high-risk funds laundered through cross-chain protocols is a cause for concern in the crypto industry. With criminals adopting more complex methods to obfuscate their activities, it is crucial for regulators and blockchain security firms to stay vigilant and implement effective measures to combat cross-chain crime. By identifying and tracking suspicious transactions, it is possible to mitigate the risks associated with these illicit activities and protect the integrity of the crypto ecosystem.
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