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Crypto criminals are increasingly exploiting cross-chain tools such as bridges, decentralized exchanges (DEXs), and coin swap services to launder over $21.8 billion in illicit funds across multiple blockchains.
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This surge represents a 211% increase from 2023, highlighting the growing complexity and sophistication of money laundering techniques in the evolving multichain ecosystem.
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According to Elliptic, a leading blockchain analytics firm, approximately 12% of these illicit flows are linked to North Korean actors, underscoring the geopolitical dimensions of crypto crime.
Cross-chain laundering has surged to $21.8B in 2025, driven by bridges, DEXs, and coin swap services, with North Korea implicated in 12% of illicit crypto flows.
Bridges as Critical Channels in Cross-Chain Crypto Laundering
Blockchain bridges have emerged as pivotal conduits for laundering illicit cryptocurrency. While a single bridge transaction may appear routine, Elliptic’s 2025 crosschain crime report identifies patterns such as structured and multi-hop chain-hopping as key indicators of laundering activity. Structured chain-hopping involves splitting illicit funds across multiple blockchains simultaneously, whereas multi-hop chain-hopping moves assets repeatedly between chains to obscure their origin.
These tactics, despite incurring high transaction fees, are deliberately employed to complicate forensic tracing and evade regulatory scrutiny. A notable example from early 2025 involved hackers linked to North Korea who laundered $75 million by sequentially bridging funds from Bitcoin to Ethereum, then to Arbitrum, Base, and finally Tron, showcasing the layered complexity of modern laundering schemes.
Smaller-Scale Criminals Adopt Chain-Hopping Techniques
Chain-hopping is no longer exclusive to state-sponsored or large-scale cybercriminal groups. Elliptic reports that smaller criminals, including those involved in fraud and online gambling, now routinely use these methods. One UK fraud case involved splitting $200,000 across 90 different assets on multiple blockchains to fund illicit activities. This democratization of laundering techniques highlights the widespread adoption of cross-chain obfuscation strategies.
Decentralized Exchanges (DEXs) as Entry Points for Laundering
Despite their transparent nature, DEXs have become instrumental in laundering cycles, particularly when low-liquidity tokens are involved. Criminals exploit DEXs to swap obscure tokens for widely accepted stablecoins like USDT or USDC, circumventing centralized platforms that enforce Know Your Customer (KYC) protocols.
Elliptic’s analysis of the May 2025 Cetus exploit on the Sui blockchain illustrates this trend. Attackers swapped USDT for USDC on a DEX before bridging these stablecoins to Ethereum and converting them into ETH via a DEX aggregator. This process leverages the freezing capabilities of centralized stablecoins to evade asset seizure, while ETH’s decentralized nature complicates recovery efforts.
Advanced Laundering Techniques Using DEX Aggregators and AMMs
Criminals further exploit DEX aggregators and automated market makers (AMMs) by routing transactions through obscure trading pairs and executing swaps in small batches or via smart contracts. These tactics reduce slippage and minimize detection risks, effectively masking illicit flows within legitimate trading activity. The distinction between DEXs and cross-chain services is increasingly blurred as platforms integrate native cross-asset swaps.
Coin Swap Services: The Underground Currency Changers
Coin swap platforms operate as centralized intermediaries that facilitate anonymous asset exchanges across blockchains with minimal friction and limited AML controls. These services are favored by darknet market operators, ransomware groups, and online fraudsters due to their opacity and permissive regulatory environments.
Many coin swap services openly advertise on darknet forums and Telegram channels, often highlighting their refusal to cooperate with law enforcement. Some even provide unconventional services such as armed cash pickups or physical “treasure” cash drops, further complicating law enforcement efforts.
Illicit Gambling and Scam Networks Fuel Coin Swap Usage
Elliptic estimates that approximately 25% of illicit flows through coin swap services are tied to unlicensed online gambling platforms. These sites, frequently operated by Russian-speaking and Southeast Asian actors, are also linked to scams like pig butchering and narcotics trafficking, creating a cyclical network of high-risk funds that perpetuate laundering and criminal activity.
Technological Arms Race in Combating Cross-Chain Laundering
The evolution of laundering techniques into complex, multi-chain sequences has intensified the challenge for investigators. However, advancements in blockchain analytics tools are enhancing the ability to trace illicit flows across diverse networks. Platforms such as Elliptic Investigator, Chainalysis Storyline, and TRM Forensics automate cross-chain analysis, significantly reducing manual investigation time.
Centralized stablecoin issuers also contribute by retaining the ability to freeze suspicious assets, adding a layer of enforcement capability. As Arda Akaturna of Elliptic notes, automation and improved visibility have transformed what once took hours into processes completed in minutes, signaling a gradual leveling of the playing field between criminals and law enforcement.
Future Outlook: Adapting to a Multichain Reality
As the crypto ecosystem continues to expand across multiple blockchains, the sophistication of laundering tactics will likely grow in parallel. Continuous innovation in forensic technology and regulatory frameworks will be essential to mitigate these risks. Stakeholders are encouraged to stay informed and leverage emerging tools to detect and disrupt illicit cross-chain activities effectively.
Conclusion
The dramatic rise in cross-chain crypto laundering, now exceeding $21.8 billion, underscores the urgent need for enhanced analytical capabilities and regulatory vigilance. Bridges, DEXs, and coin swap services have become integral to laundering operations, exploited by actors ranging from state-sponsored hackers to small-scale criminals. While challenges persist, the development of automated tracing tools and collaborative enforcement efforts offer promising avenues to counteract these evolving threats in the multichain landscape.
