Analysts at Elliptic reported that between 2020 and 2022, cybercriminals laundered more than $4 billion through decentralized exchanges, cross-network bridges, and anonymous exchange services.
According to a report by Elliptic, decentralized exchanges (DEXs) have facilitated the movement of at least $1.2 billion worth of fraudulent assets. At the same time, criminal use of DEXs is closely linked to decentralized finance (DeFi) exploits and centralized exchange hacks. Inter-network bridges account for about $750 million in illegal circulation of funds.
“Elliptic does not claim that DEX platforms or bridges are exclusively used by criminals. In fact, they are mostly used by ordinary users. But experts were able to trace a significant flow of illicit funds from hacks and scams that were moved through DEXs and bridges to hide their true origin,” the report says.
About $1.2 billion more was laundered through cryptocurrency exchange services that do not support the Know Your Customer (KYC) procedure. Such services allow users to exchange assets both within and between blockchains without creating an account.
In August, Elliptic analysts reported that from July 2021 to July 2022, hackers were able to steal over $100 million worth of collectible tokens (NFTs).
Source: Bits
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