Crosschain swaps move $21B in illicit funds, up 200% in two years: Elliptic

Key Points

1. Illicit or high-risk crypto flows through cross-chain swaps have risen from $7 billion in 2023 to $21.8 billion, a 211% increase.

2. Blockchain bridges, DEXs, and coin swap services are increasingly used by criminals to launder funds across multiple blockchains.

3. Around 12% of decentralized finance (DeFi) users are involved in illicit activities, with DEXs being a common tool despite their transparency.

4. North Korean-linked hackers used cross-chain swaps to move stolen funds across five blockchains in a $75 million case.

5. Coin swap services, which often lack AML checks, are used for laundering, with 25% of illicit flows recycled through gambling and fraud networks.