- Elliptic reports $21.8 billion in cross-chain crimes led by major networks.
- North Korean hackers involved in 12% of activities.
- ETH and BTC remain central to laundering schemes.
Cross-chain crime has enlarged the reach for crypto-related illicit activities, implicating global financial stability and regulatory bodies.
Report Insights
Elliptic’s recent report attributes $21.8 billion in illicit cross-chain transactions, marking a 211% rise in two years. North Korea’s hackers, responsible for 12% of such crimes, exploit multichain ecosystems. The report observes the evolving nature of these networks, increasing the complexity for regulators and compliance entities.
Cryptocurrencies including ETH, BTC, and Layer 1 and Layer 2 tokens face significant laundering through decentralized exchanges and cross-chain bridges. Institutions encounter escalated challenges in compliance and enforcement as the cross-chain paradigm complicates traceability.
“It’s an increasingly multichain ecosystem… that just widens the available assets and the available obfuscation channels open to criminals.” — Arda Akartuna, APAC Lead Crypto Threat Researcher, Elliptic
Cross-chain activities have created operational challenges for regulators and law enforcement, impacting enforcement resources. Financial institutions must reconsider strategies to curb laundering via diverse blockchain infrastructures.
Illicit activities disrupted the global financial market, stressing the need for enhanced compliance and regulation mechanisms. The increasing use of multichain systems indicates a demand for sophisticated on-chain tools.
Industry shifts in compliance and regulations are anticipated, with financial and technological sectors adapting to the evolving cross-chain threats aligned with cyber vulnerabilities.
