According to Cointelegraph, blockchain forensics firm Elliptic has reported that cybercriminals have increasingly shifted from using crypto mixers to cross-chain bridges for laundering stolen funds over the past year. The firm's data shows that in June and July, nearly all of the stolen cryptocurrency was laundered through cross-chain bridges, a complete reversal from the first half of 2022.

Elliptic attributes this trend to the "crime displacement" effect, where criminals adopt new methods when existing ones become over-policed. The shift to cross-chain bridges has been faster than the firm's projections. Between July and September 2022, the ratio of laundered funds passing through mixers versus cross-chain bridges flipped, corresponding to the U.S. Office of Foreign Asset Control's sanctioning of Tornado Cash in August 2022.

Cybercriminals, such as the North Korean-backed Lazarus Group, have reportedly flocked to the Avalanche bridge following the sanctions. This bridge was also allegedly used by the Lazarus Group to facilitate some of the stolen funds in Stake's $41 million exploit on September 4, according to blockchain security firm CertiK. Crypto mixers experienced a brief resurgence between November 2022 and January 2023 due to the shutdown of RenBridge, which facilitated an estimated $500 million in laundered funds throughout its operation.

Elliptic suggests that criminals may prefer cross-chain bridges because they are more difficult for blockchain forensic firms to track illicit activity across chains in a scalable manner. Additionally, many stolen tokens can only be exchanged through cross-chain bridges, and most DeFi services do not require identity verification for use. The firm estimates that $4 billion in illicit or high-risk cryptocurrencies have been laundered through cross-chain bridges since 2020.