Cross-chain bridge RenBridge laundered $540M in hacking proceeds: Elliptic
Cross-chain bridges have been the goal of quite a lot of hacks this yr, however new information from blockchain analytics supplier Elliptic alleges one has been used to launder over half a billion {dollars} in ill-gotten crypto property.
In line with an Aug. 10 report, crypto bridge RenBridge has facilitated the laundering of not less than $540 million in proceeds of crime since 2020 by means of a course of referred to as chain hopping — changing one type of cryptocurrency into one other and transferring it throughout a number of blockchains.
Elliptic mentioned that decentralized cross-chain bridges present “an unregulated various to exchanges for transferring worth between blockchains.”
Rogue states and hacker teams
For probably the most half, cross-chain bridges or blockchain bridges are used for professional functions, enabling customers to maneuver cryptocurrencies seamlessly throughout blockchain networks.
Customers usually deposit their tokens from one chain to the bridge protocol, which is locked right into a contract, then the consumer is issued the equal of a parallel token in one other chain.
Nevertheless, Elliptic famous these bridges have additionally been utilized by ransomware gangs, exploiters, and hackers to launder proceeds of crime, with RenBridge accounting for not less than $540 million of laundered proceeds since 2020.
Most not too long ago, not less than $2.4 million in crypto property stolen in the course of the Nomad hack on Aug 2 went by means of the cross-chain bridge, in keeping with the agency.
Elliptic additionally famous that property from decentralized finance (DeFi) companies price not less than $267.2 million have been laundered utilizing RenBridge within the final two years, whereas a portion of the $80 million stolen from Liquid World alternate final yr, allegedly by North Korea, has handed by means of RenBridge.
The Conti ransomware group, which famously attacked the Costa Rican authorities again in June, has additionally laundered over $53 million by means of RenBridge thus far.
Authorities involved
Elliptic famous that blockchain bridges reminiscent of RenBridge poses a problem to authorities attempting to clamp down on people and teams utilizing the rising know-how for illicit actions.
“Blockchain bridges reminiscent of RenBridge pose a problem to regulators since there is no such thing as a central service supplier that facilitates these cross-chain transactions,” it mentioned.
Associated: Is there a safe future for cross-chain bridges?
In a Jun. 30 standing report from the Monetary Motion Activity Power (FATF), the intergovernmental group highlighted growing dangers related to “chain hopping,” notably within the DeFi house:
“The speedy progress and evolution of the Defi sector is a trigger for concern because it might trigger dangers to speed up and proliferate.”
