Massive Seizure Ends eXch’s Shadowy Run
In a sweeping international cybercrime operation, German authorities have shut down the controversial cryptocurrency platform eXch, seizing over $38 million in digital assets and more than 8 terabytes of data. The action, carried out by the Federal Criminal Police Office (BKA) and Frankfurt’s Public Prosecutor’s Office, marks a major step in investigating a high-profile crypto theft that has shocked the digital finance world.
The takedown occurred on April 30, just one day before eXch had announced it would shut down on its own. The move followed mounting allegations that the platform was deeply entangled in laundering the proceeds from the $1.46 billion Bybit hack in February 2025.
A Platform Under Scrutiny
According to the BKA, the urgency of the operation was prompted by an internal statement from eXch claiming it would close due to “an active transatlantic operation aimed at forcibly shutting our project down and prosecuting us for ‘money laundering and terrorism.’” This admission effectively accelerated the timeline for German law enforcement, who promptly moved to secure the platform’s infrastructure and financial holdings.
“The operators had initially announced at short notice that they would cease their service on May 1, 2025,” the BKA stated. “The authorities anticipated this and secured numerous pieces of evidence and leads. Despite a short preparation time, the platform’s database and the associated crypto assets were seized.”
Links to Bybit Hack and North Korean Group
eXch found itself at the center of a global investigation after the February exploit of Bybit, one of the world’s largest crypto exchanges. Following the theft, Bybit publicly accused eXch of serving as a conduit for the hackers and requested that the platform freeze any connected funds. That request was reportedly ignored.
Further analysis by threat intelligence firms tracked the illicit crypto as it moved through eXch. Notably, blockchain research group Elliptic concluded that over $200 million of the stolen Bybit assets had passed through the platform. Elliptic also pointed to involvement by the Lazarus Group, a state-sponsored hacking collective linked to North Korea.
eXch’s Denials and Privacy Mission
Despite mounting evidence, eXch has consistently denied its role in laundering stolen crypto. In response to the accusations, the platform claimed it had received only an “insignificant” portion of the stolen funds. While no official statement has yet been issued in the wake of the seizure, one administrator reportedly maintained that the platform’s purpose was rooted in defending financial anonymity.
eXch has branded itself as a privacy-focused exchange, a mission that has drawn criticism from law enforcement and cybersecurity experts alike. Its untraceable systems and refusal to cooperate with external probes made it an attractive tool for money laundering, according to investigators.
A Long History of Concealed Transactions
Since launching in 2014, eXch has quietly facilitated around $1.9 billion worth of cryptocurrency transfers. Its services were accessible not only through the clearnet but also via the darknet, where anonymity is prioritized and regulatory oversight is minimal.
German prosecutors believe this long operational history holds critical information. They hope the seizure of eXch’s data and assets will offer new leads not just in the Bybit case but also in uncovering a broader network of cybercrime.
Implications for Global Cybercrime Investigations
Authorities say the operation’s findings are expected to ripple across numerous ongoing investigations into international cybercrime rings. “We expect the findings in this operation to also contribute to the investigation of numerous other cybercrimes,” a spokesperson from the BKA said.
The coordinated effort highlights growing international resolve to confront criminal activities in the cryptocurrency space. As privacy-centric platforms continue to come under scrutiny, eXch’s fall may be a signal that law enforcement agencies are closing in on networks that once operated in the shadows with impunity.
No Response from Platform Amid Seizure
Inquiries sent to eXch’s administrators in the aftermath of the takedown went unanswered. With servers now in police custody and its domain shuttered, the platform’s future seems sealed.
As the investigation continues, the full scope of eXch’s involvement in laundering stolen crypto remains under review. But with over $30 million seized and key infrastructure dismantled, authorities are confident that one of crypto’s most elusive players has finally been silenced.
