United

Gary

Million

Guardian

Billion

<ul class="list-ic vertical">
 <li><span>1</span> <a>Nearly $4 Billion has been laundered through decentralized exchanges (DEXs).</a></li>
 <li><span>2</span> <a>With over 22K crypto assets in the market, only a handful of them are operating legitimately.</a></li>
</ul>
<p>Gary Gensler, the Securities and Exchange Commission (SEC) chair, once called the crypto sector “rife with fraud and hucksters”. After a new study on crypto sector fraud, the statement might make sense. Elliptic, a blockchain analytics company, reports that $7 Billion worth of cryptocurrencies were laundered via cross-chain services. Cross-chain crime involves the transfer of funds in rapid succession to obscure transactions.</p>
<h2 class="wp-block-heading" id="strong-cross-chain-services-becomes-preferred-mean-of-exploits-strong"><strong>Cross-Chain Services Becomes Preferred Mean of Exploits</strong></h2>
<p>The report highlights that cross-chain bridges are becoming the preferred money laundering method for a variety of cybercrimes. Elliptic attributes findings from their report namely “State of Cross-chain Crime”. The initial report found nearly $4 Billion has been laundered through decentralized exchanges (DEXs). The figure has almost doubled now.</p>
<p>Moreover, the company speculated that $6.5 Billion would be laundered by this time. However, the cybercriminals surpassed their expectations. In addition to that, the blockchain data analyst foresees the number exceeding $10 Billion by 2025. Duration between July 2022 and July 2023 saw almost $3 Billion laundered through cross-chain crimes.</p>
<p>The rising popularity of altcoins among criminals is giving tailwinds to such crimes. Furthermore, the report underscores a ‘criminal displacement’ effect arising out of a surge in law enforcement activities in the sector. Triviality in identity verification and scarce capabilities to be overwatched by mainstream blockchain analytics add to the exploitation of cross-chain services.</p>
<div class="wp-block-image">
 <figure class="aligncenter is-resized"><img decoding="async" loading="lazy" src="https://lh4.googleusercontent.com/EAOxjFfdWw17DxN3whiOadqPNJ098I8o-PPw0wWGURXaR8aI6sTfog-XD8FO_Kunf3cnHpArWRg6hPMtU3RxzToU0E2Lc9iijcUavQENa0IH3XlhaEDQZHnQOVbcP0MyKjsSLqibEasVyOSeFdalAkw" alt="Alarming Metrics For Users Using Cross-Chain Crypto Services" style="width: 100%;height:505px" width="1170" height="505">
  <figcaption class="wp-element-caption">
   Source: Elliptic
  </figcaption>
 </figure>
</div>
<p>The chart above displays the coin swap services that have the largest piece of the pie in the dark web, illicit virtual asset services, and gambling. On the contrary, cross-chain exploits fall under the area of expertise within Korea-based Lazarus Group, and ransomware and malware services. Thefts from DEXs too have increased significantly.</p>
<h2 class="wp-block-heading" id="strong-leveraging-crypto-illiteracy-strong"><strong>Leveraging Crypto Illiteracy</strong></h2>
<p>Elderly citizens are coming under the crosshairs of cybercriminals. Their non-tech-savvy nature makes them an easier target on the radar. American business news provider reported of Marjorie Bloom, a retired civil servant, losing all her life savings to a <a href="https://www.thecoinrepublic.com/2023/10/07/will-pepe-crypto-topple-the-dogecoin-in-the-crypto-bull-run/" rel="noopener noreferrer nofollow">crypto </a>fraud.</p>
<div class="wp-block-image">
 <figure class="aligncenter is-resized"><img decoding="async" loading="lazy" src="https://lh4.googleusercontent.com/6r5-pjbT3mTtWnXgeQ_9P6cyO-XWjuj3gUXeSaJ4LLy8GR_43Z8xerU6c8goNYADpj9IDlKcg9Y0GNkGdYqvy7-v1aq5ohqTAZW2-DpJGL06nJgo8ra_gOkvycJrytywZqg8Ih7qISnUaPbq6Wjp3OQ" alt="Alarming Metrics For Users Using Cross-Chain Crypto Services" style="width: 100%;height:616px" width="1170" height="616">
  <figcaption class="wp-element-caption">
   Source: Elliptic
  </figcaption>
 </figure>
</div>
<p>The United States citizens have lost over $700 Million to investment crimes followed by falsely personified tech support. A similar case was reported by the British news provider The Guardian in June 2023. Social media played an important part in this. Additionally, it left her saddled with a bundle of debts.</p>
<p>With over 22K crypto assets in the market, only a handful of them are operating legitimately. Decentralized nature is both a boon and a bane to them. On one hand, it eliminates middlemen from the game, while on the other, blind faith in projects may leave investors stranded in the desert.</p>
<p>On top of that, artificial intelligence (AI) has made deploying website codes no less than child’s play. Anyone can create a project backed by bogus coins or tokens to exploit potential investors. Cryptocurrencies have grown significantly between 2013 and 2023. However, AI integration in the sector could manifold the figures.</p>

Alarming Metrics For Users Using Cross-Chain Crypto Services

Table of Contents

Thecoinrepublic.com

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