Mix-chain bridges happen to be the prospective in excess of a couple of hacks this season, but new data from blockchain analytics provider Elliptic alleges a person accustomed to launder over half a billion dollars in ill-become crypto assets.
Based on a Wednesday report, crypto bridge RenBridge facilitated the washing of at least $540 million in proceeds of crime since 2020 via a process referred to as chain hopping — converting one type of cryptocurrency into another and moving it across multiple blockchains.
Elliptic stated that decentralized mix-chain bridges provide “an unregulated option to exchanges for transferring value between blockchains.”
Rogue states and hacker groups
Typically, mix-chain bridges or blockchain bridges can be used for legitimate purposes, enabling users to maneuver cryptocurrencies seamlessly across blockchain systems.
Users typically deposit their tokens in one chain towards the bridge protocol, that is locked right into a contract, then your user is disseminated something like a parallel token in another chain.
However, Elliptic noted these bridges are also utilized by ransomware gangs, exploiters, and online hackers to launder proceeds of crime, with RenBridge accounting not less than $540 million of laundered proceeds since 2020.
Most lately, a minimum of $2.4 million in crypto assets stolen throughout the Nomad hack on August. 2 experienced the mix-chain bridge, based on the firm.
Elliptic also noted that assets from decentralized finance (DeFi) services worth a minimum of $267.two million happen to be laundered using RenBridge within the last 2 yrs, while part of the $80 million stolen from Liquid Global exchange this past year, allegedly by North Korea, has transpired through RenBridge.
The Conti ransomware group, which famously attacked the Costa Rican government in June, has additionally laundered over $53 million through RenBridge to date.
Government bodies concerned
Elliptic noted that blockchain bridges for example RenBridge poses challenging to government bodies attempting to clamp lower on individuals and groups while using emerging technology for illicit activities.
“Blockchain bridges for example RenBridge pose challenging to regulators since there’s no central company that facilitates these mix-chain transactions,” it stated.
Related: What is the secure future for mix-chain bridges?
Inside a Jue 30 status report in the Financial Action Task Pressure (FATF), the intergovernmental organization highlighted growing risks connected with “chain hopping,” especially in the DeFi space:
“The rapid growth and evolution from the Defi sector is really a reason to be concerned as it may cause risks to accelerate and proliferate.”
