Reported by: TAYLOR LOCKE

Criminals have increasingly used decentralized exchanges (DEXs), cross-chain bridges, and coin-swap services for money laundering, a new report by blockchain analysis firm Elliptic shows. Though use of each typically is “overwhelmingly legitimate,” criminals so far have laundered over $4 billion in illicit crypto through the three services since 2020.

“This expansion of blockchain technology poses many opportunities for criminality,” the Elliptic report states, noting the ability to easily obfuscate transactions and move illicit funds without the anti–money-laundering (AML), know-your-customer (KYC), and identity verification barriers they’d otherwise face with a traditional exchange or platform. “All virtual asset services are therefore at risk of what is known as the ‘cross-chain problem.’” 

Read full report: https://fortune.com/crypto/2022/10/05/elliptic-4-billion-laundered-through-dexs-bridges-coin-swaps/

Read study by Elliptic: https://www.elliptic.co/media-center/more-than-4-billion-in-illicit-crypto-laundered-through-dexs-cross-chain-bridges-and-coin-swaps