Bridge attacks are becoming more frequent, and one of them is often used for money laundering as well. Elliptic said $540 million worth of assets have been laundered across the RenBridge since 2020.
According to analysts, to launder funds, hackers use a technique called “chain hopping” – simply exchanging tokens and distributing them to different blockchains. Decentralized bridges are “an unregulated alternative to centralized exchanges for transferring funds between blockchains.”
The report highlights that internet bridges are primarily used for legitimate purposes. However, attackers often use them to hide the origin of funds. At the same time, North Korean hackers also use the RenBridge bridge.
“Bridges between blockchains, such as RenBridge, pose a challenge for regulators as there is no central service provider that powers these cross-chain transactions,” the analysts wrote.
The June 30 report by the Financial Action Task Force (FATF) also highlights the growing danger of using inter-network bridges for money laundering. According to Chainalysis, $2 billion worth of cryptocurrencies were stolen from bridges in 2022.
Source: Bits
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