The Top 5 Platforms for Laundering Illicit Crypto
According to Elliptic, Curve, Uniswap, 1inch, and the Ren bridge were the top platforms of choice for laundering illicit crypto.
The new research from blockchain analytics and crypto compliance firm Elliptic has revealed the extent to which cross-chain bridges and decentralized exchanges (DEXs) have removed barriers for cybercriminals. The findings show that these platforms have made it easier for criminals to launder money and avoid detection. This is a major concern for law enforcement and regulators who are trying to crack down on illicit activity in the cryptocurrency space.
As crypto assets become more interconnected, the risk of cross-chain crime increases. Elliptic's report highlights the need for better vigilance and security measures to protect against this new type of laundering.
As the world increasingly moves towards a digital economy, criminals are finding new and innovative ways to launder money and hide their illicit activity. According to a new report, cybercriminals have been using cross-chain bridges, DEXs, and coin swaps to obfuscate at least $4 billion worth of illicit crypto proceeds since the beginning of 2020.
Decentralized exchanges are becoming increasingly popular among criminals looking to launder stolen cryptocurrency. According to a new report, around a third of all stolen crypto, or roughly $1.2 billion, is swapped using these exchanges.
The report found that more than half of the illicit funds it identified were swapped directly through two DEXs — Curve and Uniswap, with the 1inch aggregator protocol coming a close third. This is a worrying trend, as it shows that criminals are increasingly using DEXs to launder their money. This highlights the need for better regulation of these exchanges, and for authorities to crack down on them if they are used for illegal activities.
The use of coin swap services to launder money is a growing problem. These services allow users to swap assets within and across different networks without having an account, making it difficult to trace the money. This needs to be stopped.
The Russian government is aware of the growing problem of cybercrime and is working to crack down on it. However, many criminals are still able to find ways to exploit vulnerabilities in computer systems. This problem is compounded by the fact that many cybercrime tools and services are advertised on Russian forums catering almost exclusively to criminals.
The use of cryptocurrencies by sanctioned entities is on the rise, according to Elliptic. This trend is likely to continue as more and more entities look to use cryptocurrencies to move funds and carry out cyber-attacks.
“Wallets connected to groups eventually sanctioned by the United States – including those used by North Korea to perpetrate multi-million-dollar cyberattacks – have laundered more than $1.8 billion through such techniques.”
The FATF's report on virtual asset risks highlights the dangers of cross-chain bridges and "chain hopping" for money laundering and terrorist financing. These activities are highly risky and can lead to serious consequences. The best way to prevent these activities is to educate people on the risks and to monitor them closely.
The Ren bridge is a top choice for crypto laundering, with the vast majority of illicit assets, or more than $540 million, passing through it. This shows that criminals are increasingly using cryptocurrencies to launder money, and highlights the need for better regulation and oversight of the digital currency sector.
Ren has become a popular choice for those seeking to launder the proceeds of theft, the report said. The cryptocurrency's anonymous nature makes it difficult to trace, making it an attractive option for criminals.
The proposed solution to mitigate crypto theft, called ERC-20R, could help to reverse transactions that have been made within a set time period. This would provide greater protection for users and help to reduce the overall amount of theft that occurs within the crypto space.
