A new report from blockchain analytics firm Elliptic shows that cross-chain crypto crime surged to an astounding $21.8 billion. This increase has been primarily driven by the increased use of decentralized exchanges (DEXs), cross-chain bridges, and swap services to launder illicit funds. Transnational criminals operating out of Russia, Iran, and North Korea are taking advantage of these anonymous swap services. They turn cryptocurrency into privacy coins to hide the source of their money. The report highlights an alarming trend in the rapid evolution of these platforms for hacks, scams, and sanctions evasion.
Elliptic’s findings are a stark reminder of the expanding sophistication of the crypto ecosystem and its misuse by malicious actors. The firm helped trace Bybit’s stolen funds after a hack earlier this year. Moreover, they emphasized the need to leverage advanced analytics to crack down on these illicit schemes.
As Elliptic found, North Korea is connected to around 12% of the overall $21.8 billion in total cross-chain illicit activity. The report further finds at least $300 million in illicit crypto tied to Iranian services that fall under U.S. sanctions.
Additionally, the report states that as the use of blockchains and digital assets has expanded, so too has the potential for illicit activity. Our Cumulative Growth of Illicit Crosschain Activity chart focuses on the illegal activity for a reason.
"Sanctions evasion, especially North Korea-related crypto activity, continues to be one of the biggest risks when it comes to monitoring cross-chain activity." - Elliptic's report
He continued, saying that sophisticated cross-chain analytics provide investigators and regulators essential transparency into bad actors flows.
Approximately one-quarter of all illicit and high-risk activity we’ve seen pass through coin swap services is associated with online gambling.
"Authorities’ focus on gambling has increased in recent months and years, particularly after the betting craze during the 2024 US elections." - Elliptic's report
The results further underscore the growing role that DEXs, cross-chain bridges and swap services have played in facilitating illicit activities.
"Criminal actors are exploiting the growing complexity of the crypto ecosystem – but they can be stopped." - Dr. Arda Akartuna, Lead Crypto Threat Researcher at Elliptic
