The controversial, privacy-focused crypto exchange eXch has announced it will cease operations on May 1 following growing allegations that it was involved in laundering stolen funds from the $1.4 billion Bybit hack, allegedly linked to North Korea’s Lazarus Group.
🔹 DOJ Whistleblower Triggered the Shutdown
eXch CEO Johann Roberts revealed that the decision came after an approach from a verified whistleblower within the U.S. Department of Justice (DOJ), who shared critical data that the team “could not ignore.”
“We see no point in continuing in an environment where we are targeted simply because some misunderstand our intentions,” eXch stated in an official announcement.
The team also referred to an active SIGINT operation — signal intelligence gathering — aimed at eXch’s infrastructure.
🔹 Linked to the Bybit Hack and Money Laundering
Back in February, hackers stole 401,346 ETH from Bybit — worth $1.4 billion at the time. The FBI later linked the attack to North Korea’s Lazarus Group.
Blockchain investigators such as Elliptic and ZachXBT alleged that eXch processed part of the stolen funds, even after Bybit requested a freeze on related transactions.
eXch initially denied all claims and blamed a delay in AML screening from its third-party provider — claiming that data about the compromised addresses arrived 12 hours too late. The exchange later admitted to having processed “a very small amount,” around 90,000 ETH, out of the stolen batch.
🔹 eXch: “We Don’t Launder for North Korea”
At first, eXch firmly denied any wrongdoing:
“We do not launder money for Lazarus or the DPRK,” the exchange said.
It also claimed its refusal to cooperate with Bybit was due to past reputational attacks from Bybit against eXch.
🔹 No KYC = No Access
eXch was known for operating without Know-Your-Customer (KYC) verification, which it marketed as a commitment to user privacy. According to eXch, that’s also why Elliptic refused to work with them.
CEO Johann Roberts later criticized standard AML procedures, calling some of them “pointless and easily bypassed”. He also accused firms like Elliptic of elitist policies that hinder fairness in the crypto industry.
🔹 What’s Next?
eXch will continue offering API access to its partners until May 1, after which a new management team will decide on the platform’s future.
It remains unclear whether the current team will face legal charges, but investigations are intensifying. Authorities, blockchain analysts, and crypto watchdogs are still tracking wallet movements tied to the Bybit breach.
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