According to Elliptic's report, the value of illicit or high-risk cryptocurrency transactions via crosschain swaps surged from $7 billion to $21.8 billion in 2023. This underlines the growing threat these operations pose to the financial sector.
Increase in Criminal Activities via Crosschain Swaps
Elliptic estimates that around $21.8 billion has flowed through crosschain swaps in illicit or high-risk transactions, reflecting a 211% increase from 2023. Approximately 12% of these movements are linked to North Korea. Once a niche for experienced traders, crosschain swaps have become essential in money laundering schemes.
Money Laundering Techniques in DeFi
Elliptic notes that new money laundering tactics involve structured transitions and multi-hop movements of assets across blockchains. These methods help obscure trails, complicating the work of investigators. A notable case in early 2025 involved hackers linked to North Korea transferring $75 million across multiple blockchains using both structured and multi-hop techniques.
Crosschain Laundering Methods and Countermeasures
Crypto exchange sites that operate without strict identification measures are also increasingly employed for money laundering. Elliptic reports that around 25% of transactions through such services are linked to illegal activities, including online gambling. However, new tools for tracking these transformations are emerging, such as Elliptic Investigator, which aids in visualizing and analyzing crosschain operations.
Elliptic's report emphasizes the crucial need for combating money laundering in the cryptocurrency sector. As crosschain swaps and new laundering methods proliferate, strengthening tools for tracking and preventing illicit operations becomes vital.
