The Evolving Tactics of Cryptocurrency Crime
The world of cryptocurrency is witnessing a troubling trend as criminals adapt their tactics to circumvent law enforcement efforts. According to research from the blockchain analytics company, Elliptic, current data suggests that a significant portion of illicit fund transfers now involve intricate cross-chain strategies that span numerous blockchain networks.
Cross-Chain Investigations and Statistics
Specifically, it was found that about one-fifth of these complex investigations engage over ten different blockchains, while a third include at least four, and 27% broach the use of more than five different blockchains.
Expert Insights
Jackson Hull, Elliptic’s Chief Technology Officer, has pointed to a notable increase in cross-chain crime over the past five years, largely driven by declining costs and the growing availability of options for shifting assets between different crypto platforms.
Although many individuals engage in these cross-chain transactions for legitimate reasons, Hull emphasized that this method is commonly exploited by hackers and criminals for money laundering and to mask their digital footprints.
Technological Advancements in Investigation
In response to the evolving landscape, Elliptic has enhanced its capabilities by expanding support to encompass 50 different blockchains. This advancement allows investigators utilizing Elliptic’s systems to effectively trace funds as they navigate through any supported blockchain.
Moreover, the software is designed to monitor transactions through over 300 cross-chain bridges. Hull also highlighted the firm’s agility in integrating new blockchain technologies into their coverage, noting that they can implement these updates within a mere three weeks.
