Blockchain analytics firm Elliptic revealed a 211% surge in crypto laundering via cross-chain swaps over the past two years, with illicit flows projected to hit $21.8 billion by 2025. This marks a threefold increase from the $7 billion recorded in 2023. Criminals exploit decentralized exchanges (DEXs), bridges, and swap services to move assets across blockchain networks, creating complex transaction trails that obscure fund origins.
Nearly one-third of blockchain investigations now require tracking funds across three or more networks, with 27% spanning five chains and 20% involving ten or more. Sophisticated actors like North Korea's Lazarus Group—responsible for $2.5 billion in laundered assets including the $1.46 billion Bybit hack—and Iranian sanctions evaders ($300 million) use multi-hop "chain-hopping" tactics combined with privacy coins.
Elliptic counters this using AI-driven analytics covering 54 blockchains and 300+ bridging paths, enabling automated tracing of cross-chain flows. Case studies include the Russian exchange Garantex (sanctioned in March 2025) and the CBEX scam laundering $1 billion. Despite these tools, most financial institutions remain under-equipped to detect multi-chain laundering patterns.