Inter-chain bridge RenBridge laundered $540 million in hacked proceeds: Elliptic
The blockchain investigative firm says cross-chain bridges are an "unregulated alternative" to exchanges for transferring value between blockchains.
New
Cross-chain bridges have been the target of more than a few hacks this year, but new data from blockchain analytics provider Elliptic alleges one was used to launder more than half a billion dollars of ill-gotten crypto assets.
According to a Wednesday report, crypto bridge RenBridge has facilitated the laundering of at least $540 million in proceeds of crime since 2020 through a process known as chain hopping: converting a form of crypto- currency into another and move it across multiple blockchains.
Elliptic said decentralized cross-chain bridges provide “an unregulated alternative to exchanges for transferring value between blockchains.”
Rogue states and pirate groupsFor the most part, cross-chain bridges or blockchain bridges are used for legitimate purposes, allowing users to move cryptocurrencies seamlessly across blockchain networks.
Users typically deposit their tokens from one chain to the bridge protocol, which is locked into a contract, and then the user receives the equivalent of a parallel token in another chain.
However, Elliptic noted that these bridges have also been used by ransomware gangs, exploiters, and hackers to launder the proceeds of crime, with RenBridge accounting for at least $540 million in proceeds laundered since 2020.
More recently, at least $2.4 million in crypto assets stolen in the Nomad hack on Aug. 2 passed through the cross-chain bridge, according to the company.
Elliptic also noted that assets from decentralized financial services (DeFi) worth at least $267.2 million have been laundered using RenBridge over the past two years, while a part of
The blockchain investigative firm says cross-chain bridges are an "unregulated alternative" to exchanges for transferring value between blockchains.
New
Cross-chain bridges have been the target of more than a few hacks this year, but new data from blockchain analytics provider Elliptic alleges one was used to launder more than half a billion dollars of ill-gotten crypto assets.
According to a Wednesday report, crypto bridge RenBridge has facilitated the laundering of at least $540 million in proceeds of crime since 2020 through a process known as chain hopping: converting a form of crypto- currency into another and move it across multiple blockchains.
Elliptic said decentralized cross-chain bridges provide “an unregulated alternative to exchanges for transferring value between blockchains.”
Rogue states and pirate groupsFor the most part, cross-chain bridges or blockchain bridges are used for legitimate purposes, allowing users to move cryptocurrencies seamlessly across blockchain networks.
Users typically deposit their tokens from one chain to the bridge protocol, which is locked into a contract, and then the user receives the equivalent of a parallel token in another chain.
However, Elliptic noted that these bridges have also been used by ransomware gangs, exploiters, and hackers to launder the proceeds of crime, with RenBridge accounting for at least $540 million in proceeds laundered since 2020.
More recently, at least $2.4 million in crypto assets stolen in the Nomad hack on Aug. 2 passed through the cross-chain bridge, according to the company.
Elliptic also noted that assets from decentralized financial services (DeFi) worth at least $267.2 million have been laundered using RenBridge over the past two years, while a part of
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