Elliptic Details Evolution of 'Crypto Crime Displacement' in Latest Research
Explore the rising trend of cross-chain crime in the crypto ecosystem. Learn about the tactics criminals employ to obscure their trail....
- Cross-chain crime is a new form of malfeasance in the crypto ecosystem, involving swapping crypto assets within and across blockchains to obscure their trail.
- Elliptic's research highlights the increasing resort to cross-chain crime, driven by the ability to launder lesser-known crypto assets without identity verification.
- $4 billion of illicit cryptocurrencies were laundered using cross-chain methods in 2022 alone.
- Criminals are adjusting their tactics in response to preventative measures, leading to a trend of "crime displacement."
- The preference for cross-chain crime is due to the generation of crypto crime proceeds in lesser-known assets, the lack of identity verification in cross-chain services, and the inability of traditional blockchain analytics solutions to trace illicit activity.
- The growing trend of cross-chain crime has broader implications for the stability and security of online crypto platforms, potentially leading to more stringent oversight from regulators.
The article highlights the concerning rise of cross-chain crime in the crypto ecosystem, emphasizing the need for solutions to combat this trend. It also raises questions about the stability and security of online crypto platforms, potentially leading to more regulatory oversight. Overall, the sentiment is negative due to the criminal activities and vulnerabilities exposed.