Chain hopping is a money laundering technique used to conceal the source of illicit funds by transferring them across multiple blockchain networks. It involves repeatedly transferring funds between different cryptocurrencies, making it difficult to trace the origin of the funds. This technique exploits the decentralized and unregulated nature of cryptocurrency, allowing criminals to launder money and avoid detection.

Here's a step-by-step explanation of chain hopping:

1. Initial deposit: Illicit funds are deposited into a cryptocurrency wallet on one blockchain network.

2. Cross-chain transfer: The funds are transferred to a different blockchain network using a cross-chain bridge or atomic swap.

3. Multiple hops: The funds are repeatedly transferred across multiple blockchain networks, making it difficult to trace the origin.

4. Final withdrawal: The laundered funds are withdrawn into a wallet on a final blockchain network or exchanged for fiat currency.

Chain hopping makes it challenging for authorities to track and trace illicit activities, but law enforcement and financial regulators are developing strategies to combat this technique and prevent money laundering in the cryptocurrency ecosystem.