DeFi Emerges as the Primary Laundering Channel for Impersonation Scams, Chainalysis Finds
Impersonation‑themed fraud surged more than 1,400% YoY in 2025, with perpetrators increasingly routing stolen proceeds through decentralized finance protocols rather than traditional centralized exchanges.
Overview
A new analysis from blockchain‑forensics firm Chainalysis reveals that criminal actors are shifting the money‑laundering phase of crypto‑related impersonation scams toward decentralized finance (DeFi) infrastructure. The firm estimates that fraudsters siphoned over $17 billion from victims in 2025, a substantial portion of which was laundered through smart contracts, bridging services and decentralized exchanges (DEXs).
The report highlights three key trends:
- Explosive growth of impersonation scams – the number of fraud cases where perpetrators pose as trusted entities rose more than 1,400% year‑over‑year.
- Higher average payouts – the typical scam payment climbed from roughly $780 in 2024 to $2,760 in 2025, a 253% increase.
- Migration to DeFi for fund‑movement – unlike previous waves that relied heavily on centralized exchanges, scammers now exploit DeFi primitives such as token swaps, cross‑chain bridges and automated market makers to obscure transaction trails.
From Centralized Exchanges to Smart Contracts
In 2024, Chainalysis observed spikes in laundering activity tied to smart‑contract interactions and token‑level transactions. By mid‑2025, the focus shifted to cross‑chain bridges, which allow assets to move between disparate blockchains with minimal on‑chain visibility. The second half of the year saw a surge in the use of DEXs, where liquidity pools and atomic swaps provide additional layers of anonymity.
The transition is strategic: DeFi protocols are permissionless, require no Know‑Your‑Customer (KYC) checks, and can be accessed with a single wallet address. This reduces the friction and reporting obligations that are inherent to centralized platforms, making it harder for investigators to trace the final destination of illicit funds.
Impersonation Scams in Detail
Impersonation scams typically involve fraudsters masquerading as reputable organizations—ranging from crypto exchanges and DeFi projects to financial institutions—prompting victims to transfer funds to a designated address. Chainalysis notes that the average amount demanded per victim has more than tripled since 2024, suggesting that scammers are targeting higher‑net‑worth individuals or employing more sophisticated social‑engineering tactics.
The report also points out that the average duration between the initial fraudulent contact and the ultimate laundering step has shortened. By integrating DeFi tools directly into phishing websites or chat‑bot scripts, attackers can guide victims straight to a smart contract that instantly splits and moves funds across multiple chains.
Broader Crypto‑Security Landscape
The rise in impersonation‑related losses contrasts with a downturn in headline‑grabbing crypto hacks. Data from security firm PeckShield shows that December 2025 saw roughly 26 major exploit incidents, resulting in about $76 million of stolen assets—down ~60% from the previous month’s $194 million. While exploit frequency remains high, the total value at stake has receded, suggesting that the “low‑and‑slow” fraud model (impersonation + DeFi laundering) is now a more lucrative vector for criminals.
Industry Implications
- Regulators and law‑enforcement will need to broaden their investigative scope beyond centralized exchanges, incorporating on‑chain analytics that can parse complex DeFi interactions.
- DeFi projects may face pressure to implement additional provenance‑tracking mechanisms or voluntary compliance frameworks without compromising the permissionless ethos of the ecosystem.
- Wallet providers and custodians could consider offering built‑in risk‑scoring services that alert users when they interact with contracts flagged for high‑risk laundering patterns.
Key Takeaways
- $17 billion+ was lost to crypto fraud in 2025, with impersonation scams accounting for a large share of the increase.
- Impersonation scams grew >1,400% YoY, and the average victim payment rose to $2,764, up 253% from the previous year.
- DeFi is now the preferred laundering conduit, with criminals leveraging smart contracts, cross‑chain bridges and DEXs to hide illicit proceeds.
- Traditional centralized exchanges are becoming less central to laundering operations, reducing the efficacy of exchange‑based AML controls.
- Crypto‑security incidents (hacks) fell sharply in December 2025, indicating a shift in attacker focus from large‑scale exploits to steady, high‑volume fraud.
The findings underscore a maturing criminal ecosystem that is adept at exploiting the very qualities—open access, composability, and anonymity—that have propelled DeFi’s growth. Stakeholders across the crypto space will need to adapt their security and compliance strategies to address this evolving threat landscape.
Source: https://thedefiant.io/news/research-and-opinion/defi-becomes-preferred-laundering-route-for-impersonation-scams-chainalysis
