Cybercriminals  Launder $540M  by Chain Hopping

- Chain hopping was used as a significant tool by crypto criminals to anonymously transfer millions   – Renbridge, a cross chain bridge,  was  specifically used to launder $540 Million since 2020.  –  50% dark money through Renbridge were gained by theft  and $153Million by ransomware. 

According to the latest transfer data graph from Elliptic Blockchain analytics firm, $540M was laundered using Renbridge as a cross-chain server by crypto criminals since 2022. In the past two years, a movement of illegal crypto by potential hackers was observed, which used cross bridges to make these proceedings untraceable.   Cross-chain bridges quickly transferred funds across different blockchain servers without going through a fair exchange. Chain hopping surfaced as a foolproof tool to anonymously transfer billions of funds through blockchains without any record. 

The Newest Crypto Scam Exposed

Crypto Criminals Use Cross-Chain Bridges 

It’s been reported that Renbridge facilitated these transfers from the end of 2020 leading up to the current year 2022. This asset movement got the most traction between April and October 2022. The data revealed that the transfers were mainly between Bitcoin and Ethereum.  It states that nearly 50% of these crypto gains emerged from theft. 28.45% of these gains were Ransom-related, amounting to $153M. The crypto criminals obtained these funds by blackmailing various big organizations with their private information and data, as Russian-linked ransomware gangs used Renbridge. 

Stolen Credit card withdrawals, dark web markets, and other sources accounted for the remaining amount. According to the stats, North Korea was responsible for stealing various other laundered crypto funds across Renbridge.  Renbridge servers were also used by Conti group to launder $53Million.Conti gang also attacked the Costa Rican Government using these servers.

Crypto-Related Money Laundering 

The government officials are working non-stop to catch hold of all the dark corners of crypto exchanges across blockchain servers. Cross-chain bridges are decentralized and work the best in transferring assets between blockchains without regulation. Federal U.S set new rules to receive and transfer cryptocurrency funds with pertinent information about the provider and immediate crypto transfer into dollars when transferred. 

Many other cross-chain service providers are under scrutiny by the government to track any illicit transfer of assets. It is feared that due to the anonymous asset transferring feature, many firms might be involved in dark crypto transfers for easy cash gains.   Tornado Cash was black-listed by the Federal Treasury department on Monday. Their report claimed that Tornado Cash 2019 was responsible for laundering $7 billion in crypto. 

Other Blockchain Server Providers Under Scrutiny