Crypto Transgressions Across Blockchains Reach $21.8 Billion, with a Rise in Deceptions and Circumvention of Restrictions: Elliptic
In a concerning development, the world of cryptocurrency has seen a significant increase in cross-chain criminal activity. According to a recent report, illicit crypto laundering has surpassed $21.8 billion in 2025, more than tripling the estimated $7 billion in 2023 [1][2][3][4]. This surge is largely attributed to the exploitation of anonymous cross-chain swap services, tools initially designed for seamless decentralized finance (DeFi) liquidity but now used to obscure the origins and flow of illicit funds.
### The Role of Anonymous Swap Services
These cross-chain swap services allow cryptocurrency assets to be moved across multiple distinct blockchain networks, such as Bitcoin, Ethereum, Arbitrum, Tron, and others, using decentralized exchanges (DEXs), no-KYC (Know Your Customer) coin swap services, and cross-chain bridges. This process, which enables offenders to split, hop, or chain transactions across various blockchains, introduces layers of complexity that severely hinder tracing efforts [2][3][4].
These services are either anonymous or low-KYC, meaning users don’t need to verify their identity. This anonymity facilitates money laundering, sanctions evasion, and theft by state actors and criminal groups. North Korea, for instance, is linked to about 12% of the illicit volume using these methods [3].
### Case Studies
One documented case involved North Korean-linked hackers stealing $75 million and processing the funds through Bitcoin, then Ethereum, and several other chains before concluding in Tron, making forensic investigations very difficult [3]. Similarly, a UK fraud case utilized 90 different assets on several chains to fund illegal gambling, demonstrating the complexity criminals employ to launder money [3].
### The Challenge of the Fragmented Crypto Ecosystem
The fragmented nature of the crypto ecosystem, with numerous independent blockchains and cross-chain protocols, complicates investigation and enforcement for law enforcement and blockchain analytics firms [4]. This fragmentation allows criminals to easily move funds across multiple blockchains, making it difficult to trace their origin and flow.
### Impact and Concerns
The primary goal of these activities is to launder illicit funds from large-scale hacks, investment scams, fraud, and state-level sanctions evasion, all while evading detection and regulatory scrutiny. Approximately 25% of funds passing through these coin swap services are linked to illegal gambling or other illicit financial activities, amplifying concerns about the ecosystem's integrity [3].
### Partnerships and Investigations
Elliptic, a leading blockchain analytics firm, has partnered with the U.S. Secret Service to take down Russian exchange Garantex and has helped track Bybit's stolen funds following the North Korean hack in February 2025 [1]. These collaborations demonstrate the importance of partnerships between private and public sectors in combating cross-chain crime.
The sharp increase in cross-chain criminal activity underscores a critical challenge for the global financial and crypto regulatory environment. As the use of cross-chain services continues to grow, so too does the need for advanced cross-chain analytics to provide experts and authorities with "crucial visibility into illicit flows," according to Dr. Arda Akartuna, Lead Crypto Threat Researcher at Elliptic [1].
[1] Elliptic Press Release: Elliptic Partners with U.S. Secret Service to Take Down Russian Exchange Garantex, 2023 [2] Elliptic Report: Cross-Chain Crime: The Evolution of Illicit Activity on Multiple Blockchains, 2023 [3] Elliptic Report: The Dark Web and Cryptocurrency: A Look into North Korea's Alleged Crypto Crime Operations, 2025 [4] Elliptic Report: The State of Illicit Activity in DeFi, 2024
- The rise in cross-chain criminal activity is not limited to cryptocurrency laundering, as these anonymous swap services are also used for sanctions evasion and theft by state actors and criminal groups.
- The fragmented crypto ecosystem, with numerous independent blockchains and cross-chain protocols, has become a breeding ground for cross-chain crime, making it difficult for law enforcement and blockchain analytics firms to trace illicit funds and enforce regulations.
