Crosschain Laundering Rises 200% in Two Years to $21B: Elliptic
At least $21.8 billion in illicit or high-risk cryptocurrency has been processed through crosschain swaps, a significant increase from $7 billion in 2023. Twelve percent of these transactions are linked to North Korea. Crosschain swaps have become integral to money laundering, allowing criminals to obscure funds across multiple blockchains. Techniques like structured and multi-hop chain-hopping are now common, complicating investigations. Decentralized exchanges (DEXs) are increasingly used as entry points for laundering, especially with low-liquidity tokens. Coin swap services operate as anonymous currency changers, facilitating illicit exchanges with minimal oversight. Approximately 25% of illicit flows through these services are associated with online gambling. The evolution of laundering methods has led to complex, multi-chain strategies that challenge tracing efforts, prompting the development of advanced investigative tools to combat crypto crime.
