Crypto mixers and crosschain bridges: How hackers launder stolen assets
Crypto mixers and crosschain bridges help criminals obscure stolen funds, making it harder for investigators to trace illicit transactions.
Crypto mixers, or tumblers, are basically smart contracts used to hide the origin of crypto transactions. Hackers send their cryptocurrency to a mixer’s address. The mixer blends the crypto with coins sent by other users, thereby concealing the identity of each contributor. Subsequently, the mixer redistributes the coins, effectively obscuring their original source.
For example, if 10 users each mix 1 Ether (ETH), they each contribute and receive different ETH. The mixers’ ability to conceal funds has a dual nature: Hackers use them to hide stolen funds, while others enhance financial privacy, protecting against surveillance. Despite their controversial use, mixers remain a tool for those seeking greater crypto anonymity
