Crypto exchange eXch has come under scrutiny for alleged money laundering related to the Bybit hack. While eXch denies these claims, Bybit is actively working to recover the stolen funds.
eXch Responds to Allegations
eXch swiftly denied all allegations on February 23 via a statement on the Bitcointalk forum, ensuring users that its operations remain unaffected, and all funds are secure. Despite dismissing these claims as fear, uncertainty, and doubt (FUD), eXch admitted processing a small portion of funds linked to the hack, calling it an isolated incident. The platform promised to donate any transaction fees from these funds for public benefit.
Allegations and Backlash
On February 22, analyst ZachXBT claimed that eXch had facilitated the laundering of $35 million linked to the Bybit hack. He received support from blockchain security firm SlowMist and Nick Bax from the Security Alliance, who reported significant ETH conversions on the eXch platform. Despite these accusations, eXch has resisted Bybit's attempts to freeze the remaining stolen assets, expressing frustration over previous freezes of its users’ funds without proper cause.
Bybit’s Recovery Efforts
Despite eXch’s denial, Bybit CEO Ben Zhou emphasizes the need for industry-wide collaboration to tackle hackers. Bybit is actively pursuing the recovery of stolen funds through a bounty program, working with law enforcement, and partnering with the Ethereum Foundation. This multi-faceted strategy showcases Bybit's commitment to safeguarding user assets and restoring trust.
The situation surrounding the Bybit hack continues to unfold, capturing the crypto community's keen interest. While eXch denies any wrongdoing, Bybit strives to recover stolen funds and restore user trust.
