Cryptocriminals are experiencing an increasing number of pain to avoid detection and are moving assets across numerous blockchain ecosystems to track investigators. According to new data from blockchain analytics firm Elliptic, 20% of complex cross-chain surveys span more than 10 different blockchains.
Elliptic found that a third of complex cross-chain studies included more than four blockchains, with 27% involved in more than five.
Jackson Hull, chief technology officer at Elliptic, told Coindesk that cross-chain crime had existed as long as there were multiple blockchains, but the amount of cross-chain crime has increased “quite dramatically” over the past five years, breaking down the cost of switching the ecosystem and increasing the number of options.
There are many non-criminal reasons why someone wants to move assets between crypto ecosystems, but Hull said it is a very common obfuscation tactic for other criminals who want to wash their money and cover the truck.
Hull said Elliptic recently expanded coverage to support 50 blockchains. This means that investigators using Elliptic’s software can easily track funds moving through any of the covered blockchains, or pass through any of the “over 300” bridges. Hull added that Elliptic can add a new blockchain to its coverage in just three weeks.
“The most important, dangerous, high-stakes investigations are trying to pop more and more across these blockchains as (bad) actors are trying to wash or hide or obfuscate funds,” Hal said. “That’s what really drives that.”
Elliptic has supported US law enforcement in the recent takedown of the licensed Russian crypto exchange Garantex. Following the takedown, the exchange attempted to rebrand as Grinex.
