German authorities conducted an operation resulting in the closure of the crypto service eXch and seizure of $38 million in digital assets linked to the Bybit hack. This event underscores the importance of adhering to anti-money laundering (AML) measures in the crypto market.
Closure of eXch and Seizure of Funds
On May 9, 2025, Germany's Federal Criminal Police and the Frankfurt Prosecutor’s Office shut down eXch, seizing $38 million in digital assets related to the Bybit hack. eXch had operated as an unregulated crypto swapping service since 2014.
Response from Authorities
The Federal Criminal Police and Frankfurt’s Prosecutor highlighted the platform's role in laundering crypto from criminal activities. Authorities confiscated Bitcoin, Ether, Litecoin, and Dash, drawing attention to non-compliance with AML regulations.
> "Among other things, a portion of the $1.5 billion stolen from the Bybit crypto exchange, which was hacked on February 21, 2025, is said to have been exchanged via eXch." — Germany’s Federal Criminal Police Office (BKA).
Future Implications
Analysts predict stricter regulatory frameworks for crypto operations following this enforcement. The event underscores the trend of increasing governmental action to discourage illicit financial flows, focusing on AML measures and technological scrutiny. Authorities emphasized the importance of robust AML controls within crypto exchanges.
The closure of eXch signifies a significant step towards greater transparency and regulation in the crypto industry, highlighting the need for improvements in financial transaction oversight.
