Tajlili Elliptic published a report on money laundering by digital currency fraudsters. According to this report, 4 billion dollar money laundering Mainly through DEXs.
Chain analytics company Elliptic has published a new report titled “Chain Scams 2022”. The report notes that cybercriminals have been using DEXs, bridges, and coin exchanges since 2020. They have laundered 4 billion dollars from these methods.
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Money laundering of 4 billion dollars of cryptocurrencies
According to Elliptic, decentralized exchanges are generally used legally, but hackers use them for acts such as theft, fraud, Setting up dark web services (Dark Web) and Ponzi schemes have also used.
Researchers from the Elliptic analytics company announced that a large part of Money laundering of 4 billion dollars of cryptocurrencies It is done through popular encryption tools. A spokesperson for Elliptic said in a conversation with The Block:
Elliptic does not believe that the only use case for DEXs is digital fraud, in fact, the opposite is true. Decentralized exchanges are often used by legitimate users, but Elliptic has tracked illegal funds linked to DEXs.
Money laundering through chain bridges
Elliptical researchers report their findings for each of the Blockchain tools have unveiled Elliptic announced that DEXs have facilitated the transfer of $1.2 billion in illegal assets since 2020. DEXs are protocols that allow users to execute buy and sell orders with the help of smart contracts.
Elliptic announced that Using DEXs By criminals, it is closely related to abuse in the decentralized finance (DeFi) space and hacking of decentralized exchanges. Cross chain bridges are the second most popular tool by Elliptic among criminals. Elliptical researchers reported that criminals have moved nearly $750 million in illicit money through cross-chain bridges since 2020.
These bridges allow users to transfer assets across blockchain networks. The vast majority of illegal assets are moved over bridges. About $540 million in illicit funds have been transferred through RenBridge, the cross-chain bridge between Bitcoin and Ethereum.
Money laundering through digital currency trading
The Elliptic report shows that criminals use blockchain-based tools such as DEXs and bridges mainly to launder money or hide their chain activities; Therefore, it is more difficult to arrest them. Both of these strategies obscure the path of transactions and make investigations more difficult.
The third tool used by fraudsters to launder $4 billion is Coin exchanges and cryptocurrency exchange services (no KYC required). This allows users to exchange assets both within and across blockchains without opening an account. According to Elliptic, digital coin exchanges are often promoted in Russian cybercrime forums. Coin exchanges account for about $1.2 billion in illegal scams.
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