A recent revelation by blockchain surveillance powerhouse Elliptic has unearthed a staggering $7 billion swirling through the shadowy underbelly of decentralized exchanges (DEXs), cross-chain bridges, and non-KYC crypto compliant exchanges.

This colossal sum, already amassed by July this year, defied Elliptic’s own conservative prediction from the previous year, which had pegged such activities at a mere $6.5 billion by the close of 2023.

What this report underscores is the increasing intricacy of these illicit maneuvers. Criminal actors have elevated their game, employing increasingly sophisticated techniques to orchestrate cross-chain transfers.

These methods involve diving into the depths of derivatives trading and executing limit orders on exchanges, all in a calculated effort to obfuscate their money laundering endeavors.

In a mere span of one year, stretching from July 2022 to July 2023, a staggering $2.7 billion was surreptitiously laundered through these nefarious means, according to the crypto report.

One name that resonates prominently in this dark narrative is the Lazarus Group, a cybercriminal entity hailing from North Korea. Elliptic’s findings pinpoint the Lazarus Group as a primary contributor to the illicit flow of funds through cross-chain bridges.

In fact, they reign supreme as the foremost source of ill-gotten gains laundered via these channels.

The Lazarus Group doesn’t just stop at being a mere contributor; they occupy the third-largest spot in the roster of all cross-chain criminal activities monitored by Elliptic.

Shockingly, this group has managed to cleanse over $900 million through cross-chain methodologies alone, casting a long, ominous shadow over the world of cryptocurrency security.

One conspicuous trend that emerges from this murky landscape is the increasing appeal of digital assets beyond the realm of Bitcoin (BTC) to cybercriminals.

Certain cryptocurrencies, such as the privacy-focused Monero (XMR), possess intrinsic attributes that make them a darling of malefactors. Enhanced privacy features embedded in the core layer of these coins provide a safe haven for their illicit activities.

On the flip side, stablecoins like DAI also find favor among these actors due to their resilience in maintaining a stable value relative to fiat currencies.

The allure of cross-chain operations lies partly in the fact that many cross-chain services, including bridges, operate without the cumbersome know-your-customer (KYC) requirements characteristic of centralized exchanges.

This absence of stringent identity verification creates a perfect breeding ground for illicit actors to conduct their activities, adroitly hopping between assets and chains to evade detection and accountability.

In the words of Elliptic, “These bad actors can therefore make their activities difficult to trace by engaging in prolific asset- or chain-hopping,” adding another layer of complexity to the ongoing battle against crypto-based financial crimes.