The seizure, announced on May 9 by German authorities, has seized €34 million (approximately $38 million) in cryptocurrency from the eXch platform, which is implicated in laundering funds stolen during the record-breaking $1.5 billion Bybit hack. The seizure, announced on May 9 by Germany’s Federal Criminal Police Office (BKA) and Frankfurt’s main prosecutor’s office, marks the third-largest crypto confiscation in the BKA’s history. The seized assets include Bitcoin, Ether, Litecoin, and Dash. Authorities also shut down eXch’s operations and confiscated over eight terabytes of data from its servers.
eXch, operating since 2014, functioned as a crypto swapping service without implementing Anti-Money Laundering (AML) measures. The platform facilitated approximately $1.9 billion in crypto transfers, some of which were believed to be of criminal origin, including assets laundered during the Bybit hack. Blockchain analysts linked eXch to laundering millions of funds from other crypto thefts and exploits, including Multisig, FixedFloat, and the $243 million Genesis creditor theft. The platform had also been involved in numerous phishing schemes over the past few years.
The BKA emphasized that crypto swapping services like eXch are essential components of the underground economy, used to conceal illicit funds from illegal activities such as hacking or trading in stolen payment card data. Senior public prosecutor Benjamin Krause highlighted the importance of taking action against such services to prevent the laundering of criminal proceeds. Following the seizure, eXch announced its decision to cease operations by May 1, citing a hostile environment and increasing pressure from intelligence agencies.
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