Cryptocurrency exchange eXch announced it would cease operations on May 1, 2025, following allegations of money laundering related to a Bybit hack.
Closure of eXch and its reasons
eXch revealed that most of its management team voted to 'cease and retreat' following allegations that North Korea’s Lazarus Group used the platform to launder approximately $35 million of the $1.4 billion stolen in a Bybit exploit. The exchange also reported being targeted by an 'active transatlantic operation' aimed at its shutdown and potential legal action.
Hack attack on Bybit
On February 21, 2025, a group of hackers from North Korea executed the largest cryptocurrency heist in history, stealing $1.5 billion in Ethereum tokens from the Bybit exchange. The hackers exploited a free storage software product that Bybit used to move Ethereum, likely coupled with phishing attacks. On February 22, CEO Ben Zhou assured that the exchange had the resources to cover the loss.
Signals from the Federal Reserve
Federal Reserve Chair Jerome Powell has indicated that regulators may soon take a more open approach to digital assets. He noted that with growing bipartisan interest in stablecoin regulation, Congress may revisit a legal framework previously stalled.
The closure of eXch highlights the difficulties faced by cryptocurrency exchanges amid growing allegations and regulatory pressure. The situation surrounding Bybit illustrates the new challenges and changes in the governance of the cryptocurrency sector.
