Elliptic: more than $4 billion laundered in crypto via DEX and cross-chain swaps

Criminals used decentralised exchanges (DEX), cross-chain bridges and swaps to launder illicit proceeds in crypto worth more than $4 billion. According to a report by Elliptic.

Researchers estimate that about $1.2 billion of cryptocurrency stolen in hacks of exchanges and DeFi projects was laundered through DEX, helping avert asset seizure.

A further $1.2 billion of illicit assets were moved via on-chain and off-chain swaps. Elliptic notes that this coin-exchange channel is often advertised on Russian hacker forums and is aimed exclusively at criminals.

The analysts also pointed to increasing risk of cross-chain bridges being used by terrorist and sanctioned entities. Using such methods, criminals laundered more than $1.8 billion.

The principal users of these channels are hackers, darknet markets, illicit crypto-asset services, Ponzi schemes and ransomware operators.

“These results indicate a growing ‘cross-chain problem’ that allows cybercriminals to evade outdated blockchain-analytics solutions and complicate investigators’ work,” the experts said.

In response to this threat, Elliptic introduced a new blockchain-analytics tool, Holistic Screening. It is a comprehensive screening solution that enables monitoring of activity across all coins and networks simultaneously.

Earlier, Elliptic identified the RenBridge cross-chain bridge as a vector through which criminals laundered illicit crypto assets worth more than $540 million.

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