Cybercriminals are increasingly using cross-chain bridges to launder illicit funds, according to Chainalysis.
Laundering Tactics Evolve
In 2023, the amount of crypto received by bridge protocols from illegal sources surged by 138% to $743.8 million. This suggests a shift in money laundering tactics, with criminals moving away from exchanges and towards bridges and mixers.
Lazarus Group’s Involvement
The notorious Lazarus Group, a North Korea-backed cybercriminal gang, is among those exploiting bridges for money laundering.
Harmony Bridge Hack
In 2022, Lazarus Group stole $100 million from Harmony’s cross-chain bridge. Chainalysis traced the laundering process, revealing that the funds were transferred through multiple bridges and blockchains.
Countermeasures
As cross-chain bridge laundering becomes more prevalent, authorities and blockchain companies are working to develop countermeasures. This includes enhanced monitoring and regulation of bridge protocols.
