German authorities have conducted one of the largest cryptocurrency seizures in their history, confiscating €34 million from the eXch exchange, suspected of laundering illicit funds.
Overview of the Seizure
The seizure, which is the third-largest in BKA history, was announced by Germany’s Federal Criminal Police Office (BKA) and Frankfurt’s chief prosecutor's office. The operation also involved the confiscation of over eight terabytes of server data, leading to the platform's shutdown.
eXch's Role in Money Laundering
Operating since 2014, the eXch platform marketed itself as a crypto swapping service. It allowed users to exchange digital assets without standard Anti-Money Laundering (AML) checks that are mandatory for financial institutions in Germany and the EU. Over its decade of operation, eXch reportedly handled about $1.9 billion in crypto transactions, some of which may be linked to criminal activities.
Official Comments
Senior public prosecutor Benjamin Krause highlighted the role of such platforms in obscuring stolen assets. "Crypto swapping is an essential component of the underground economy. It helps turn dirty money from hacks or stolen card data into clean funds that can be reused," Krause stated.
The seizure of cryptocurrency from eXch underscores the increasing efforts by German authorities to combat cybercrime and money laundering in the cryptocurrency space.
