Hackers and fraudsters used crypto bridge RenBridge to launder $540 million, says report

Illustration by Alex Castro / The Verge

According to Elliptic, at least $540 million has been laundered through the RenBridge network. RenBridge is an example of the risks of a cross-chain network.

RenBridge is said to be a way to easily convert virtual currency like ZCash and Bitcoin to other networks. The report says that cross-chain bridges have emerged as a key way for users to move money easily across networks. The proceeds of theft from other chains, as well as the proceeds of Ransomware operations, are included.

It is possible to hide the sources of funds with specific services like Elliptic. Regulators have begun to pay attention. The US Department of the Treasury has imposed sanctions on Tornado Cash, a mixer designed to obscure the sources of digital currency. In May, it did the same thing with the mixer. The services were noted as being used by North Korean hacker groups.

A report by Elliptic suggests that RenBridge was used to move money stolen from Japan's LiquidCrypto network. According to the service, RenBridge is popular among Russia-linked Ransomware operations.

Privacy and censorship evasion are two things that can be done with many other digital services. Defi is rife with theft and hacking and identifying chokepoints is useful for security analysts.