Crypto Criminals Evade Detection by Moving Assets Across Multiple Blockchains
Crypto criminals are becoming more sophisticated in their efforts to evade detection, with a growing trend of moving assets between various blockchain ecosystems. According to data from blockchain analytics firm Elliptic, 20% of complex cross-chain investigations now involve more than 10 different blockchains.
In fact, Elliptic found that a significant portion of these investigations (33%) involve four or more blockchains, with 27% involving more than five. Jackson Hull, Elliptic’s chief technology officer, explained that the volume of cross-chain crime has seen a significant increase over the past five years due to the lower cost of switching ecosystems and the expanding options available.
While there are legitimate reasons for individuals to move assets between crypto ecosystems, Hull noted that it is also a common tactic used by hackers and criminals to launder money and cover their tracks.
Elliptic has expanded its coverage to support 50 blockchains, enabling investigators to trace funds moving between any of the covered blockchains or passing through the “300-plus” bridges supported by Elliptic’s software. Hull mentioned that Elliptic can add a new blockchain to its coverage in as little as three weeks.
Hull emphasized the importance of tracking funds across multiple blockchains in high-stakes investigations where bad actors attempt to launder or obfuscate funds. This was evident in Elliptic’s collaboration with U.S. law enforcement in dismantling the sanctioned Russian crypto exchange Garantex, known for its association with ransomware gangs and Russian oligarchs seeking to evade sanctions. The exchange has since tried to rebrand itself as Grinex.
