What happened?
Cross-chain criminal activity has dramatically increased to over $21 billion, according to a report by Elliptic, a leading digital asset risk management firm. This figure marks a threefold rise from $7 billion in 2023, highlighting the growing use of decentralized financial technologies by criminals. The report details how these technologies are being used for the illicit movement and concealment of assets through decentralized exchanges, cross-chain bridges, and no-KYC swap services.
Who does this affect?
This surge in cross-chain crime primarily impacts cryptocurrency exchanges, financial regulators, and law enforcement agencies tasked with tracking and managing illegal financial activities. It also affects legitimate cryptocurrency users whose funds may be at risk due to increased hacking incidents and scams. Additionally, nations under sanctions, such as North Korea and Iran, use these tactics to bypass international financial restrictions, complicating geopolitical relations.
Why does this matter?
The sharp increase in cross-chain crime has significant implications for the cryptocurrency market and global financial stability. It challenges authorities to develop new strategies for monitoring and securing blockchain transactions across multiple platforms. Furthermore, this trend could potentially undermine trust in the cryptocurrency ecosystem, affecting investment and regulation decisions worldwide.