Crypto criminals are increasingly exploiting the interconnected nature of the blockchain ecosystem, moving illicit assets across various networks to obscure their origins and evade detection. A recent report from blockchain analysis firm Elliptic, titled “State of Cross-chain Crime in 2025,” highlights a dramatic increase in such “cross-chain criminal and high-risk activity,” now estimated at over $21.8 billion. This represents a significant jump from $7 billion in 2023 and $4 billion in 2022, a trend attributed to both the growing sophistication of criminals and the expanded scope of the researchers’ analysis.
The report details the intricate methods employed by these illicit actors to obfuscate their financial trails. Investigations frequently involve funds spanning three, five, or even more than ten different blockchains. This “structured chain-hopping” and “multi-hop chain hopping” is executed using decentralized exchanges, cross-chain bridges (protocols facilitating communication between blockchains), and centralized coin swap services often accessible via websites or Telegram channels. While legitimate crypto users engage in cross-chain swaps, the researchers note that suspicious activity is indicated when assets are successively split and swapped across multiple blockchains, incurring significant fees with little practical purpose beyond confusing on-chain forensics.
Emerging trends in cross-chain crime include industrialized scamming, encompassing large-scale crypto investment scams and memecoin rug pulls, as well as heightened sectoral sanctions risks. Notably, North Korea has emerged as a major player, responsible for approximately 12% of the estimated $21.8 billion. DPRK hackers are increasingly employing highly sophisticated cross-chain techniques to launder proceeds from their crypto hacks, demonstrating a strategic and persistent effort to exploit vulnerabilities in the global financial system.
A stark example of these advanced laundering techniques was the Bybit crypto exchange hack in February of this year, which involved criminals attempting to launder around $1.5 billion in cryptoassets. This incident underscored the challenge posed by cross-chain obfuscation for law enforcement and blockchain investigators. The complexity of tracing these funds across numerous chains and through various services makes it exceedingly difficult to link illicit gains back to their perpetrators, further enabling criminal enterprises.
The Elliptic report emphasizes that no type of crime is immune to cross-chain activity. Beyond hacks and state-sponsored cybercrime, the researchers observe a particular increase in cross-chain risks associated with scams, mirroring the global rise of industrial-scale fraud since the COVID-19 pandemic. Furthermore, cross-chain obfuscation is increasingly being used to hide the proceeds of online gambling, an activity illegal in many jurisdictions. This broad application of cross-chain methods signifies a significant and evolving threat across the entire spectrum of financial crime within the cryptocurrency domain.
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