German law enforcement has seized $38 million in cryptocurrency assets and the infrastructure of the eXch exchange after it was decided to cease operations.
Circumstances of Asset Seizure
The eXch exchange was closed by its management as of May 1, after which its assets were seized by German authorities. Law enforcement agencies, including the Frankfurt prosecutor's office, confiscated servers located under the domain exch.cx. The current value of the seized assets is approximately $38 million.
Allegations of Money Laundering
eXch has faced criticism for its no-KYC (no Know Your Customer) operating model, which raised suspicions of money laundering. The platform was previously linked to laundering funds stolen in hacks, including the Bybit incident. Unlike other exchanges, eXch refused to block addresses suspected of financial wrongdoing.
Impact on Cryptocurrency Market
The seizure of assets marks a significant step in the fight against cryptocurrency-related crime. German authorities now control wallets containing BTC, ETH, LTC, and DASH valued at $38 million. This is the largest seizure of crypto assets in the history of the BKA. Authorities' efforts aim to reduce the risks of cryptocurrency use for illicit activities.
The situation with eXch highlights the increasing rigor of cryptocurrency market regulations, where law enforcement is acting decisively to mitigate risks associated with money laundering.
