In 2025, cross-chain technologies have emerged as an important aspect of the cryptocurrency world, launching both innovations and new risks. According to Elliptic, the value of illicit cryptocurrency activities associated with cross-chain services has surpassed $21 billion.
State of Crypto Crime in 2025
In 2025, more than $21 billion in unauthorized transactions were recorded across cross-chain platforms. Approximately $2.5 billion of this sum is linked to North Korean hacker groups like the Lazarus Group, which have continued to exploit DeFi protocol vulnerabilities for laundering stolen funds.
Factors Driving Crime Surge
Among the contributing factors to the rise in crypto crime are:
1. Growing use of DEXs, cross-chain bridges, and coin swap services.
2. State-sponsored cybercrime, particularly from countries like North Korea, Iran, and Russia.
3. Industrialized scam operations functioning like professional businesses.
4. Activation of rug pulls associated with the popularity of memecoins.
5. Sanction evasion by high-risk exchanges.
Law Enforcement and Regulatory Challenges
Law enforcement faces challenges in tracking and prosecuting cross-chain crimes due to gaps in international cooperation and jurisdiction issues. This complicates the recovery of stolen funds. New regulations are attempting to address some of these issues by requiring bridge operators and DeFi platforms to implement KYC and AML checks.
The rise of criminal activity in the crypto space necessitates stricter measures and improved collaboration between regulators and market participants. Such efforts are crucial to protecting investors and ensuring the safety of cross-chain technologies.
