Cybercriminals Launder USD 7B Through Dexs and Cross-Chain Services
In a startling revelation, a recent study by Elliptic has unveiled that cybercriminals have funneled a staggering USD 7 billion through cross-chain bridges and coin swap services to launder illicit or high-risk funds. A North Korea-backed cybercriminal organization, the Lazarus Group, is believed to be responsible for USD 900 million of cross-chain crime.
Elliptic Study Unveils Alarming Rise in Crypto Crime
This alarming trend, observed from July 2022 to July 2023, was used to launder a staggering USD 7 billion worth of illicit and high-risk funds through cross-chain and cross-asset services, according to the blockchain analytics firm Elliptic. The estimated cost of the stolen assets surpasses earlier predictions of USD 6.5 billion at the end of 2023.
Elliptic released a press note on October 5, with the estimated value of assets laundered through decentralized exchanges, cross-chain bridges, and coin swap services significantly surpassing the USD 4.1 billion recorded last year. Tom Robinson, the co-founder and chief scientist at Elliptic, described the evolving nature of this criminal activity, stating:
"Now, with the innovative insights from our holistic blockchain analytics capabilities released last year, we’ve seen that cross-chain crime continues to grow as bad actors continue to exploit services such as decentralized exchanges (Dexs), cross-chain bridges, and coin swap services."
Sanctioned Entities Hold 80 Assets Across 26 Blockchains
One particularly concerning revelation from the study points to the Lazarus Group, a notorious cybercriminal organization allegedly backed by North Korea, being responsible for a staggering USD 900 million of these cross-chain crimes. These sanctioned entities now control more than 80 different assets across more than 26 blockchains. The Lazarus Group's high-profile hacking incidents have come to light, with the hackers making off with digital assets worth USD 200 million in a breach.
Cybercriminals, including the Lazarus Group, are increasingly using sophisticated tactics aimed at masking the trail of funds before conversion into legitimate assets. Blockchain analytics firm Elliptic identifies these tactics as involving complex cross-chain methods, such as derivatives trading and limit orders.
This disconcerting revelation underscores the pressing need for heightened cybersecurity measures and enhanced vigilance within the crypto community. As the world of cryptocurrencies continues to expand, staying one step ahead of cybercriminals has never been more crucial.
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