Crypto laundering via cross-chain methods has surged to $21.8 billion, fueled by the misuse of blockchain bridges, decentralized exchanges (DEXs), and specialized coin swap services. North Korean entities alone account for 12% of tracked illicit crypto activities.
Illicit actors employ sophisticated multi-chain laundering sequences, with North Korean hackers moving an estimated $75 million across networks including Bitcoin, Ethereum, Arbitrum, Base, and Tron to obscure fund origins.
DEXs are systematically exploited to convert obscure tokens into mainstream stablecoins like USDT and USDC, circumventing Know Your Customer (KYC) protocols designed to prevent financial crimes.
Dedicated coin swap services exacerbate the problem by operating with minimal Anti-Money Laundering (AML) controls, frequently advertising on darknet forums to support illicit gambling outfits and scam networks.
Advanced laundering techniques leverage DEX aggregators and automated market makers (AMMs), intentionally blurring operational distinctions between conventional decentralized exchanges and cross-chain services.
Blockchain analytics firms are countering with enhanced tracking tools, including Elliptic Investigator and Chainalysis Storyline, which improve transparency across multi-chain transaction pathways despite persistent challenges.