Tracking illicit actors through bridges, DEXs, and swaps
Contents
Detecting illicit activities when looking at crypto movements has always been complex, but as assets and blockchains become increasingly interconnected, this problem has become even more difficult to solve. However, with the release of our new Holistic upgrade, Elliptic users can trace through asset swaps with ease.
Thanks to decentralized exchanges (DEXs), cross-chain bridges, and increasingly sophisticated protocols, value can move freely across different assets and blockchains without the need for a centralized intermediary. This has a number of benefits for the overall financial landscape, including:
- Providing deeper liquidity to unlock new use cases for DeFi;
- More interoperability and standardization between ecosystems and protocols;
- Better overall user experience.
However, as with all innovation, there are opportunities that bad actors will attempt to take advantage of, as swapping assets oftentimes works without the necessity of undergoing the traditional KYC process (and in many cases, AML checks).
Changes in networks are hard for traditional blockchain …
Thanks to decentralized exchanges (DEXs), cross-chain bridges, and increasingly sophisticated protocols, value can move freely across different assets and blockchains without the need for a centralized intermediary. This has a number of benefits for the overall financial landscape, including:
- Providing deeper liquidity to unlock new use cases for DeFi;
- More interoperability and standardization between ecosystems and protocols;
- Better overall user experience.
However, as with all innovation, there are opportunities that bad actors will attempt to take advantage of, as swapping assets oftentimes works without the necessity of undergoing the traditional KYC process (and in many cases, AML checks).
Changes in networks are hard for traditional blockchain …