eXch Tied to $1.4B Bybit Hack and Global Laundering Network
On May 8, German prosecutors seized €34 million ($38 million) in cryptocurrency from eXch, a privacy-focused crypto swapping platform, as part of an extensive anti-money laundering investigation. The crackdown is linked to the massive $1.4 billion Bybit hack in February 2025.
The operation, led by the Federal Criminal Police Office (BKA) and Frankfurt prosecutors, is one of Germany's largest crypto confiscations to date. Authorities also secured over eight terabytes of data, shutting down eXch’s German servers.
eXch's Role in the Global Crypto Crime Web
Launched in 2014, eXch enabled users to swap crypto across chains without identity verification or adherence to AML laws. This anonymity attracted criminal networks, facilitating tactics like token hopping and cross-chain bridging to obscure stolen funds.
Investigators allege eXch helped launder over €1.75 billion ($1.9 billion) in illicit crypto, including proceeds from phishing scams, wallet drainers, and rug pulls.
Security researchers also linked eXch to high-profile exploits such as multisig wallet breaches, the $243 million Genesis creditor theft, and laundering through FixedFloat.
Alleged Ties to the Lazarus Group and CSAM Funding
Evidence suggests North Korea’s Lazarus Group used eXch to launder over 5,000 ETH from the Bybit hack. Further findings revealed the platform processed over $300,000 connected to child sexual abuse material (CSAM).
Despite claiming to shut down by May 1, eXch’s backend remained active. TRM Labs confirmed the API continued laundering funds even after its website went offline, allowing ongoing criminal transactions behind the scenes.
A Turning Point for Crypto Enforcement
This seizure underscores growing regulatory pressure on privacy-centric platforms and the critical need for compliance in the crypto ecosystem. As illicit actors become more sophisticated, global enforcement agencies are stepping up efforts to dismantle the infrastructure that enables them.
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