The German Federal Criminal Police and Frankfurt’s prosecutor’s office announced the seizure of €34 million in cryptocurrency from the eXch platform, which was allegedly used to launder stolen funds following a major hack on Bybit.
Seizure of eXch Cryptocurrency
The seizure, announced on May 9, marks the third-largest in BKA's history. The assets include Bitcoin, Ether, Litecoin, and Dash. Authorities also seized eXch's server infrastructure containing over eight terabytes of data.
Laundering Without AML Measures
Operating since 2014, the eXch platform allowed users to exchange cryptocurrencies without implementing Anti-Money Laundering measures. The BKA reported that it facilitated approximately $1.9 billion in transfers, some believed to be of criminal origin, including funds laundered during the Bybit hack. "Among other things, a portion of the $1.5 billion stolen from Bybit is said to have been exchanged via eXch," the authorities stated.
Termination of eXch Services
After initially denying involvement in laundering activities, eXch announced it would cease operations by May 1. In its statement, the platform indicated it does not see a point in operating in a hostile environment. Prosecutor Benjamin Krause emphasized the importance of action against "quick and anonymous opportunities for money laundering," noting that crypto swapping is a key component of the underground economy.
The seizure of cryptocurrency from eXch highlights the need for regulatory measures and increased oversight of cryptocurrency platforms to prevent money laundering in the digital economy.
