Elliptic is a company that specializes in blockchain analytics and crypto compliance. They just released new data that reveals how fraudsters can circumvent hurdles that were once impenetrable.
The Elliptic Report
On October 4, researchers from Elliptic named Eray Arda Akartuna and Thibaud Madelin published a report. It was titled “The status of cross-chain crime.” This study investigated “the next frontier of crypto laundering.” According to the study’s findings, the ability of a currency to flow freely among crypto assets is made easier by recent technological developments such as bridges.
Since 2020, online criminals have been using cross-chain bridges and coin swaps. It helps them to conceal at least $4 billion in illicit earnings from cryptocurrency trading.
All the cryptocurrencies traded on decentralized exchanges were worth about $1.2 billion. It was about one-third of the stolen cryptocurrency.
The investigation delved into more depth, noting that more than half of the illicit funds it discovered got directly swapped through Uniswap and Curve, with the 1inch aggregator protocol coming in a close third place. The research revealed this information.
Coin swap services enable users to exchange assets inside and across different networks without needing an account. These services have helped to launder a similar amount (roughly $1.2 billion).
It was brought to the audience’s attention that “many” are marketed in Russian criminal forums frequented only by criminals.
Elliptic claims that sanctioned groups are increasingly considering using these technologies. They use them to conduct cyberattacks and wash their dirty money.
A study conducted and released in June found that cross-chain bridges and “chain hopping” are two of the most significant risks associated with virtual assets. The Financial Action Task Force, an international body, was established to monitor and combat money laundering and the funding of terrorism. They identified these risks as two of the most significant risks.
According to reports, more than $540 million in illicit cash moved through the Ren bridge, making it an ideal place for laundering cryptocurrencies. According to the research, those “seeking to launder the proceeds of theft” have “considered Ren to be extremely tempting.”
Researchers at Stanford University proposed a solution to the problem of cryptographic asset theft one month ago. ERC-20R is a non-mandatory token standard that allows users to reverse a transaction within a specific time window.