‘New frontier’ of crypto laundering involves cross-chain bridges: Elliptic | The Financial Express

‘New frontier’ of crypto laundering involves cross-chain bridges: Elliptic

The Ren bridge was mentioned as a prominent choice for crypto laundering, with over $540 million in criminal assets travelling through it.

‘New frontier’ of crypto laundering involves cross-chain bridges: Elliptic
Stanford academics presented one potential approach to reduce crypto theft last month.

Elliptic, a blockchain analytics and crypto compliance firm, has released new research that reveals how much cross-chain bridges and decentralised exchanges (DEXs) have removed hurdles for thieves, as reported by Cointelegraph.

Elliptic researchers Eray Arda Akartuna and Thibaud Madelin took a thorough dive into what they termed “the next frontier of crypto laundering” in an Oct. 4 paper titled “The situation of cross-chain crime.” According to the report, the free flow of cash between crypto assets is now more unimpeded as a result of the advent of new technologies such as bridges and DEXs.

Since the beginning of 2020, cybercriminals have used cross-chain bridges, DEXs, and coin swaps to conceal at least $4 billion in illicit crypto profits, according to the analysis. A third of all stolen cryptocurrency, or nearly $1.2 billion, was swapped using decentralised exchanges, according to the events studied, Cointelegraph noted.

More specifically, the research stated that more over half of the illicit money found were swapped directly through two DEXs — Curve and Uniswap — with the 1inch aggregator protocol coming in third place.

The Ren bridge was mentioned as a prominent choice for crypto laundering, with over $540 million in criminal assets travelling through it.

“Ren has grown in popularity among those looking to launder the profits of theft,” it claimed.

Stanford academics presented one potential approach to reduce crypto theft last month. It incorporates an opt-in token standard known as ERC-20R, which allows you to reverse a transaction within a certain time frame.

(With insights from Cointelegraph)

Also Read: Binance opens two new offices in Brazil

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