In October, Elliptic released its inaugural annual report, in which the analytics company made a projection that the volume of funds laundered through decentralized exchanges (DEXs), cross-chain bridges, and non-KYC exchange services (referred to as coin swaps) would reach $6.5 billion by the close of 2023.
Surpassing its initial estimate by a considerable margin, Elliptic has now disclosed that a total of $7 billion in “illicit or high-risk funds” have been laundered using “cross-chain and cross-asset services.”
However, Elliptic’s latest report reveals that this milestone had already been reached as of July of the current year. The firm stated, “Criminals are employing more sophisticated cross-chain methods, including derivatives trading and limit orders, to conceal their money laundering activities.”
Between July 2022 and July of the current year, Elliptic reported that $2.7 billion had been laundered through coin swaps, bridges, and DEXs.
Lazarus Group
Elliptic also identified the Lazarus Group from North Korea as the primary offender in this context. Elliptic stated, “The Lazarus Group is by far the largest contributor to all illicit funds laundered through cross-chain bridges and ranks as the third-largest contributor to all cross-chain criminal activities, having laundered more than $900 million through cross-chain methods.”
Elliptic, headquartered in London, specializes in risk management for digital asset companies, governmental entities, and traditional financial institutions. Notably, its investors include J.P. Morgan and Wells Fargo Strategic Capital.