Please sit up and pay attention to today’s article. Because in today’s crypto world, if you’re not careful, you might lose your digital assets.
In early 2025, hackers are using various tactics to hide transactions of stolen crypto. Especially, cross-chain bridges have taken the place of traditional mixers. Due to their speed, liquidity, and relatively lower regulatory scrutiny, these bridges have become much more attractive than mixers like Tornado Cash.
The crypto hacks in early 2025 are considered one of the most devastating periods in history. At the beginning of the year alone, more than $3 billion was stolen in 119 separate incidents over 50% more than the total losses in 2024.
What’s unfortunate is how quickly the stolen funds are being moved before the truth comes to light, the face of crypto crime changes. Hackers are working very fast. Often, funds are moved to safety even before the incidents are reported.
One astonishing fact is that it took hackers only four seconds to move stolen funds which happens in the blink of an eye. This speed is now striking fear into the minds of crypto users.
Analysts have identified key patterns by analyzing the timelines of stolen fund movements such as how quickly funds are moved, how long they remain dormant, and which parts of the crypto ecosystem are most used by hackers.
Moreover, by knowing these time-based patterns, suspicious activities can be detected early. Not only that, the window of time hackers have to move funds could be used to ensure the safety of assets.
Tools to Hide Funds
The most important point in today’s discussion is that hackers are now using certain methods to hide the origin of stolen crypto. One of the most prominent is cross-chain protocols, also known as cross-chain bridges. These have now become the primary method of money laundering for stolen crypto.
You might already know that in early 2025, $1.5 billion was moved through cross-chain bridges 50.1% of all stolen funds. On the other hand, only $339 million or 11% of the stolen funds were sent through mixers.
According to Global Ledger, cross-chain protocols are now widely used by illicit actors to conceal the origins of stolen funds. This is now becoming their primary tool. Mainly due to their speed, liquidity, and lower regulatory scrutiny, these are now being used more than mixers.
At one time, mixers like Tornado Cash existed, which break traceability by mixing funds. It was once hackers’ favorite method. But nowadays, cross-chain bridges can quickly transfer assets across multiple blockchains. This not only makes it easier for hackers to move large amounts quickly but also makes it harder for law enforcement to track.
Abuse of Centralized Platforms
Another important insight has been revealed about where stolen funds eventually end up in early 2025. Approximately 15% of the stolen funds, or $453 million, have gone to centralized exchanges, which analysts say are the most likely destinations for cash-outs. In contrast, only $170 million, or 5.6%, has gone to decentralized finance platforms.
Even though DeFi is expanding rapidly. Total value locked is increasing, centralized platforms remain the main cash-out route for stolen funds. But one thing is clear despite all possibilities, DeFi still hasn’t replaced traditional exchanges.
A report has also painted a grim picture of recovery efforts. Only about 13% of the total stolen funds have been frozen or burned likely due to coordinated law enforcement. On the other hand, only 4.6% or about $140 million has been voluntarily returned, like the $42 million stolen from GMX.
The report also says that $1.6 billion or 53.6% of total losses remains unspent. Hackers may be waiting for the situation to calm down.
Global Ledger says that although law enforcement efforts have seen some success, voluntary returns are very rare. Moreover, recovery still mostly depends on rapid intervention, not goodwill.
Conclusion
One key point is how quickly hackers operate. In almost one out of every four hacks, the entire amount is safely moved and cashed out even before the incident becomes public, leaving law enforcement no opportunity to track or freeze funds. So far, the fastest full money laundering process took just two minutes and 57 seconds.
More than 30% of cases, hackers completed entire laundering process within 24 hours of moving funds from the first wallet. Therefore, exercising caution is now a necessity of the times.
