The use of cross-chain crime for laundering currencies has been on the rise among threat actors in recent times. This method involves swapping Cryptocurrency between different blockchains and tokens in order to maintain anonymity. Threat actors have been utilizing decentralized exchanges (DEXs) and cross-chain bridges to carry out these illicit activities, taking advantage of the increasing prevalence of cybercriminal activities such as ransomware attacks, scams, and crypto thefts.
According to reports, an estimated $4.1 billion of illegal funds have already been laundered through decentralized exchanges, cross-chain bridges, and coin swap services. Analysts predict that this figure will rise to $6.5 billion by the end of 2023 and reach $10.5 billion by 2025. In fact, a report reveals that a staggering $2.7 billion was laundered through cross-chain crime within a 12-month period between July 2022 and July 2023.
One of the key reasons for the high adoption rate of cross-chain crime among threat actors is the popularity of crypto assets other than bitcoin, particularly those that offer anonymity and stable value. Certain assets are even government-backed, such as Tether (USDT) or DAI, which adds to their appeal for criminals. Moreover, many cross-asset and cross-chain services, unlike centralized exchanges, do not require ID verification, making it easier for criminals to engage in illegal activities. The method also provides protection against tracing by utilizing techniques like asset- or chain-hopping.
The Lazarus group, a notorious cybercrime group known for conducting high-profile attacks, was recently found to have laundered over $900 million using cross-chain crime. Decentralized services, cross-chain bridges, and coin swap services have reportedly laundered over $7 billion of illegal funds as of July 2023. To shed more light on this issue, Elliptic researchers have released a comprehensive report detailing the use of cross-chain crime for money laundering and providing additional insights.
The increasing prevalence of cross-chain crime raises serious concerns regarding the security of the Cryptocurrency ecosystem. It highlights the need for stronger regulatory measures and better security protocols to detect and prevent these illicit activities. The use of AI-powered email security solutions, such as Trustifi, can also play a vital role in safeguarding businesses from email-based threats like phishing, malware, and ransomware.
In conclusion, the adoption of cross-chain crime as a money laundering method by threat actors has been rapidly increasing. The anonymity and potential for high profits make this method appealing to criminals, leading to billions of dollars being laundered illegally. The authorities and the industry need to collaborate to develop effective strategies and technologies to combat this growing threat and protect the integrity of the Cryptocurrency ecosystem.