Crypto Laundering's 'New Frontier' Involves Cross-Chain Bridges and DEXs: Elliptic

Curve, Uniswap, 1inch and the Ren Bridge were the top platforms of choice for illicit crypto laundering, according to Elliptic. New

A new study 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 October 4 report titled “The State of Cross-Channel 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 summarizes that the free flow of capital between crypto assets is now freer due to the emergence of new technologies such as bridges and DEXs.

Cybercriminals are using cross-chain bridges, DEXs and coin exchanges to conceal at least $4 billion in illicit crypto products since the start of 2020, he reported.

About one-third of all stolen crypto, or approximately $1.2 billion, from the incidents studied was traded using decentralized exchanges.

Digging into the details, the report noted that more than half of the illicit funds it identified were traded directly through two DEXs, Curve and Uniswap, with the 1-inch aggregation protocol coming in third.< /p>

A similar amount of approximately $1.2 billion has been laundered using coin exchange services that allow users to trade assets within and between different networks without having an account.< /p>

"Many are advertised on Russian cybercrime forums and are aimed almost exclusively at a criminal audience," he noted.

Sanctioned entities are increasingly turning to these technologies to move funds and carry out cyberattacks, according to Elliptic:

“Wallets linked to groups eventually sanctioned by the United States, including those used by North Korea to carry out multimillion-dollar cyberattacks, have laundered more than $1.8 billion through these techniques."

In a June report on digital resources...