FPTracer follows laundering across Ethereum DeFi, bridges and mixers
Original title: Tracing Money Laundering Across DeFi, Bridges, and Mixers on Ethereum
On 20 cases it recalled 98.6% of known laundering addresses and reported 30 extra bridge uses.
Researchers describe FPTracer, which rebuilds asset paths inside Ethereum transactions, classifies likely cross-chain bridge intent without a pre-collected bridge list, and uses upstream laundering evidence to look past mixers. They argue existing tracers misread complex DeFi flows, miss cross-chain intent, and treat mixers as final exits. On real-world cases the authors report high recall of known addresses and destinations, every known bridge use in the set, additional bridge uses, and possible Tornado Cash withdrawal-side activity.
Unconfirmed: Post-mixer activity is described as potential and only corroborated by public reports where available.
- Evaluation used 20 real-world laundering cases.
- Known-address recall was 98.6% and destination recall was 94.2%.
- The authors report 30 bridge uses they say were previously unreported.
- Tornado Cash use was identified in 18 cases, with possible withdrawal-side flows.
From the original article
1 min read at arxiv.orgIllicit actors exploit Ethereum's deep liquidity and diverse on-chain services to launder criminal proceeds by combining decentralized finance (DeFi) protocols, cross-chain bridges, and mixers in multi-stage processes.
By Huan Xing · arxiv.org
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