Bad Actors Exploiting Dexs and Cross-Chain Bridges
A recent research study by Elliptic has revealed that cybercriminals have used crypto cross-chain bridges and coin swap services to launder approximately $7 billion worth of “illicit or high-risk funds.” This amount surpasses Elliptic’s previous prediction of $6.5 billion by the end of 2023. The period between July 2022 and July 2023 saw a significant increase in the value of crypto assets laundered through cross-chain and cross-asset services, compared to the $4.1 billion recorded a year earlier.
In a press statement, Tom Robinson, the co-founder and chief scientist at Elliptic, highlighted the growing trend of cross-chain crime, with bad actors exploiting decentralized exchanges (dexs), cross-chain bridges, and coin swap services.
Sanctioned Entities Hold 80 Assets Across 26 Blockchains
The Lazarus Group, believed to be backed by North Korea, is responsible for approximately $900 million of cross-chain crime. Additionally, sanctioned entities currently hold over 80 different assets across more than 26 blockchains. The Lazarus Group has been implicated in various high-profile hacking incidents, including one where they allegedly stole digital assets worth $200 million.
To evade detection, cybercriminals are now employing more sophisticated cross-chain methods to obscure the movement of funds before cashing out. These methods include derivatives trading and limit orders.
Hot Take: Cybercriminals Laundered $7 Billion via Crypto Cross-Chain Bridges and Coin Swap Services
A recent study conducted by Elliptic has uncovered that cybercriminals utilized crypto cross-chain bridges and coin swap services to launder an estimated $7 billion worth of “illicit or high-risk funds.” This surpasses previous predictions and highlights the increasing prevalence of cross-chain crime. The Lazarus Group, backed by North Korea, is responsible for a significant portion of this activity, with approximately $900 million attributed to their operations. Furthermore, sanctioned entities hold numerous assets across multiple blockchains, indicating the extent of their involvement in illicit activities.
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