Recent estimates from UK-based blockchain analytics firm Elliptic reveal that illicit or high-risk cryptocurrency transactions through crosschain swaps have surged to $21.8 billion, a significant rise from $7 billion in 2023. Notably, 12% of these transactions are linked to North Korea. Initially a niche for advanced traders, crosschain swaps have become integral to money laundering, allowing criminals to obscure their activities across multiple blockchains. This 211% increase highlights the growing use of blockchain bridges and decentralized exchanges (DEXs). Elliptic's report indicates that structured and multi-hop chain-hopping techniques are increasingly employed to confuse investigators. For instance, a North Korean-linked hack involved moving $75 million through several blockchains. DEXs, often perceived as transparent, are now being exploited as entry points for laundering, especially with low-liquidity tokens. Coin swap services, functioning like underground currency changers, further facilitate anonymous exchanges, making them popular among illicit actors. As laundering methods evolve, the tools for tracing these activities are also advancing, enabling quicker investigations.$BTC
