German law enforcement has shut down the eXch crypto exchange following the seizure of $38 million in assets. This event is related to a significant investigation into the Bybit hacking incident.
Assets Seizure and Shutdown of eXch
On May 9, 2025, Germany's Federal Criminal Police Office (BKA) announced the shutdown of the eXch crypto platform and the seizure of digital assets worth approximately €34 million ($38 million). This action marks the country's third-largest crypto confiscation ever. The seized assets included Bitcoin (BTC), Ethereum (ETH), Dash (DASH), and Litecoin (LTC). Authorities also captured over eight terabytes of server data from eXch, which is expected to aid further investigations.
Link Between eXch and Bybit Hack
Investigators believe that the eXch platform played a critical role in assisting the North Korean hackers in hiding and moving the stolen Ethereum acquired during the Bybit hack that occurred on February 21, 2025. The attackers utilized this platform to swap tokens and transfer funds across blockchains, complicating the tracing process. Cybersecurity experts, including well-known blockchain investigator ZachXBT, helped trace these movements promptly after the attack.
History of Covert Crypto Swaps
Founded in 2014, eXch was known for offering rapid crypto swaps without user verification. The platform did not comply with Know Your Customer (KYC) or Anti-Money Laundering (AML) regulations. Over time, it processed more than $1.9 billion in digital currency, much of which is now believed to be linked to illegal activities. The platform was accessible on both the regular web and the darknet, attracting users wishing to conceal their transactions.
The eXch case underscores the serious measures being taken against cryptocurrency platforms that disregard regulatory requirements. As the investigation continues, more insights are expected regarding the hacking causes and implicated platforms.
