Cybercriminals Are Employing New Tactics To Launder Money, Warns Report

Cybercriminals are increasingly using cross-chain bridges to launder money, with one report from Chainalysis highlighting a significant surge in such activities.

In 2023, the amount of cryptocurrency received by bridge protocols from illicit addresses jumped to $743.8 million, up from $312.2 million in 2022, marking a 138% increase year-on-year.

The report highlighted a shift in money laundering tactics among cybercriminals, moving from traditional exchanges to more sophisticated methods involving bridges and mixers.

Notably, the North Korea-sponsored Lazarus Group has been identified as a primary perpetrator of these activities, utilizing bridges to launder stolen funds.

In one high-profile case, the Lazarus Group was responsible for a $100 million cryptocurrency theft from the Horizon Bridge of the Harmony blockchain in 2022.

“Crypto criminals with more sophisticated on-chain laundering skill sets —such as the notorious North Korean cybercriminals associated with hacking gangs like Lazarus Group — tend to utilize a greater variety of crypto services and protocols," the report said.

Also Read: North Korea's Cyberspying Extends Beyond Cryptocurrency To Target State Secrets, Says Report

Chainalysis detailed the laundering process, which involves moving the stolen funds across multiple blockchains and converting them into stablecoins before further transactions.

This growing trend of using cross-chain bridges for illicit purposes raises concerns about the security of blockchain ecosystems and the challenges in tracking and preventing such activities.

The report underscored the need for enhanced monitoring and regulatory measures to combat the sophisticated strategies employed by cybercriminals in the digital asset space.

Now Read: Crypto Ransom Payments Surged 76.4% To $1.1 Billion In 2023

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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