Elliptic Finds 1 in 5 Cross-Chain Crypto Investigations Involve Over 10 Blockchains

Key Points:

• Crypto criminals are increasingly utilizing multiple blockchain ecosystems to avoid detection, with 20% of investigations spanning more than 10 blockchains.

• Elliptic’s data reveals that one-third of complex cross-chain investigations involve four or more blockchains, underscoring this rising trend.

• To aid in tracking funds across various ecosystems, Elliptic has expanded its coverage to support 50 blockchains, contributing to law enforcement actions like the takedown of the Russian crypto exchange Garantex.

Crypto criminals are making greater efforts to avoid detection by transferring assets across multiple blockchain ecosystems to confuse investigators. According to new data from blockchain analytics firm Elliptic, 20% of complex cross-chain investigations now involve more than 10 different blockchains.

Elliptic found that a third of complex cross-chain investigations involved at least four blockchains, and 27% of cases spanned over five.

Jackson Hull, Elliptic’s CTO, noted that while cross-chain crime has been present since the early days of multiple blockchains, its prevalence has surged over the past five years. This increase is attributed to the reduced cost of moving assets between ecosystems and the growing variety of available blockchains to switch between.

While there are legitimate reasons for moving assets between crypto ecosystems, Hull explained that it’s also a common tactic used by hackers and criminals to launder money and hide their activities.

Hull mentioned that Elliptic has expanded its coverage to include 50 blockchains, allowing investigators to easily track funds moving across any of these supported blockchains or through the 300+ bridges covered by Elliptic’s software. He also noted that Elliptic can add new blockchains to its coverage in as little as three weeks.

“The most critical and high-risk investigations are those where the criminal is trying to launder, hide, or obfuscate the funds by shifting them across multiple blockchains,” Hull said. “That’s really the driving force behind this activity.”

Elliptic played a key role in assisting U.S. law enforcement in the takedown of the Russian crypto exchange Garantex, which was used by ransomware groups and Russian oligarchs to evade sanctions. After the takedown, the exchange attempted to rebrand itself as Grinex.