What is chain hopping?¶

Chain hopping is the movement or conversion of cryptocurrency across different blockchain networks, often through exchanges, bridges or swap services.

Avoid the dangerous assumption¶

The dangerous assumption is that a move to another blockchain breaks the trace completely or proves deliberate concealment.

A user may convert one asset into another, bridge a token to a different network or withdraw from an exchange using another blockchain.

The value may change form, network, address format and transaction identifier at each stage. It may also pass through an internal exchange balance before reappearing on-chain elsewhere later.

Legitimate reasons include lower fees, access to applications, trading or portfolio management.

The same method can also be used to increase complexity and frustrate tracing.

Preserve every known transaction hash, network, asset, token contract, address, amount, timestamp, fee and provider reference.

Identify the service that connected the stages.

Where an exchange or swap provider is involved, obtain internal account and transaction records.

Do not connect two transactions solely because their amounts and times are similar.

Fees, conversions, pooled liquidity and processing delays can create differences.

Likewise, do not stop tracing when the original asset is no longer present.

Follow the received asset on the destination chain.

Complex or repeated chain hopping may require specialist tools and expertise.

When reporting, distinguish confirmed activity on each blockchain from the analytical link between them and any inference about purpose.

Operational takeaway¶

Trace chain hopping as a sequence of linked conversions and cross-network movements, preserving each network, asset, service and transaction identifier separately.