Criminals have used decentralized exchanges (DEX), cross-chain bridges and coin swap products and services to launder far more than US$4 billion value of illicit crypto gains, in accordance to a exploration report by blockchain analytics company Elliptic.
See related posting: SWIFT, Chainlink announce cross-chain interoperability pact
- A DEX is a peer-to-peer marketplace where by transactions take place straight among crypto traders a cross-chain bridge is a protocol that enables users to transfer assets and information and facts between distinct independent blockchain networks and a coin swap refers to a tool for a pair of coins’ direct conversion of an trade amount without acquiring an account.
- About US$1.2 billion in cryptocurrencies stolen from DeFi or exchanges have been exchanged making use of DEXs, which accounts for a lot more than a third of all surveyed crypto stolen events, the report stated.
- A different US$1.2 billion in illicit assets was laundered by way of coin swap companies, the report explained.
- A cross-chain bridge referred to as RenBridge laundered far more than US$540 million in illicit crypto assets.
- In a June report, the international revenue laundering combating firm Fiscal Motion Process Force (FATF) reported they have found the expanding cross-chain bridges and are retaining an eye on the dangers posed by peer-to-peer transactions.
- FATF also pointed out in the report that about just one-3rd of the 53 jurisdictions had not however begun to introduce the “travel rule” for crypto to legislation, just after extending the rule to crypto transfers for 3 several years.
See linked post: Chainalysis states $2 bln stolen in cross-chain bridge hacks, rogue states involved