Why Ethereum and Stablecoins Aren’t Safe for Crypto Laundering in 2026

Crypto laundering in 2026 evolves beyond mixers, with Ethereum, stablecoins, and bridges being risky choices for illicit activities.

Crypto laundering is evolving in 2026. While many still think mixers are the safest option, that’s no longer the case.

Advanced criminals have moved beyond simple techniques, using more sophisticated methods.

Ethereum and stablecoins, once popular for laundering, now carry significant risks due to their vulnerabilities.

The Risks of Using Ethereum and Stablecoins for Laundering

Ethereum and stablecoins like USDT and USDC are not ideal for long-term crypto laundering.

These assets rely on centralized structures, allowing issuers to freeze funds at any time.

The issuers of USDT and USDC control the tokens and can halt transactions when necessary Ethereum also faces challenges, as validators can censor transactions on the network.

For laundering, assets that can be censored or frozen are dangerous.

Holding funds in Ethereum or stablecoins means the risk of having assets blocked.

This centralization exposes criminals to greater risk, making these assets unreliable for illicit activities.

The Dangers of Using Bridges in Crypto Laundering

Bridges are another risky option for laundering funds across different blockchains.

When funds move from Ethereum to Bitcoin, multisig wallets still control many bridges.

This centralized control allows operators to freeze transactions, creating major risks for large fund transfers.

This centralization undermines the privacy and security needed for illicit activities.

Though bridges enable cross-chain transactions, they expose funds to additional risks.

Centralized control over these bridges could allow authorities to freeze assets. As a result, criminals seeking to launder large amounts of money find bridges unreliable and unsafe.

Why THORChain Is Becoming the Go-To for Launderers

THORChain stands out by offering a decentralized solution to cross-chain transactions.

Unlike traditional systems that use bridges or wrapped tokens, which rely on centralized trust, THORChain uses validators who bond $RUNE to secure vaults.

This ensures no single validator can control the network, and everyone runs their own infrastructure for added security.

A key feature of THORChain is its Validator Churning system. Every 2.5 days, nodes rotate, keeping the network dynamic and secure.

This constant change ensures funds are always spendable and prevents any validator from gaining too much control.

The Bifrost Protocol allows THORChain to connect to multiple chain types, including Bitcoin, Ethereum, and Cosmos.

This eliminates the need for custom bridges, enabling seamless, native asset swaps like $BTC to $ETH.

The protocol ensures secure, fair transactions based on real usage, offering a decentralized solution for cross-chain interoperability.

Related Reading: Tether and Bitqik Launch Nationwide Crypto Education Program in Laos

Off-Chain Sales: The Final Step in the Laundering Process

After converting funds to Bitcoin, criminals often take the next step by exiting off-chain.

They typically use over-the-counter (OTC) desks in regions such as Southeast Asia or China.

These desks enable the sale of large Bitcoin amounts without attracting attention, keeping transactions discreet and difficult to trace.

This final step makes it harder for authorities to track the funds.

However, using OTC desks comes with a cost. To account for the risks, the illicit funds are often sold at a 15-20% discount.

This price spread is a result of the risks involved in selling Bitcoin through less transparent channels.

Despite this, it allows criminals to complete the laundering process while maintaining secrecy.

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