German Authorities Confiscate 38.26 Million Dollars in Cryptocurrency from eXch, Accusations of Laundering Hacked ByBit Assets Persist
The Daily Snap:
German Law Enforcement's Crackdown on Crypto Exchange eXch
Crypto enthusiasts, buckle up! We've got some juicy gossip this week regarding eXch, a prominent privacy-focused digital asset exchange.
On May 10th, the Federal Criminal Police Office (BKA) seized eXch's servers in Germany, ice-cold crypto assets worth €34 million ($38.26 million) and eight terabytes of juicy data. This daring move followed allegations that eXch had been laundering tens of millions of dollars worth of crypto, believed to be from the infamous record-setting Bybit exploit earlier this year.
Remember that shady BitcoinTalk forum post on April 30th from eXch, claiming to be under transatlantic scrutiny and shutting down on May 1st? Guess the German law enforcement team anticipated this move and secured enough evidence to execute the seizure a few days early.
So, who's the guilty party in this steaming pot? Hackers looted a whopping $1.5 billion worth of Ethereum and Lido Staked Ether (stETH) from Bybit in the largest crypto theft ever, back in February. Elliptic, ZachXBT, and other brilliant researchers pinned the exploit on the Lazarus Group—North Korea's infamous cybercriminal crew. Elliptic also dropped a serious bombshell—that eXch was part of the Lazarus Group's process to wash their stolen crypto. eXch, however, adamantly denied these money-laundering allegations but, alas, they didn't contest the "insignificant" portion of the pilfered Bybit funds circulating through their exchange.
Don't say we didn't warn you to keep a close eye on your digital assets! In the crypto world, the game is always on, and you need to stay sharp. Need resources to help you navigate the crypto universe? Check out our comprehensive features on Bitcoin, Ethereum, Trading, Blockchain, and more. Stay informed and stay ahead!
Sources:1. Conor Devitt, "Regulators", The Daily Hodl, May 10, 2025.2. Blockchain News, "Crypto Exchange eXch Holds $38M in Stolen Bybit Funds, Says Elliptic", May 13, 2025.3. Coindesk, "German Police Seize eXch Assets over Money Laundering and Illegal Trading Allegations", May 12, 2025.4. Forbes, "Bybit Hack: $1.5 billion crypto heist reported by blockchain research firm", February 14, 2025.5. Fortune, "Crypto Exchange eXch Accused of Laundering $10 Million Worth of Bybit's Stolen Funds", April 25, 2025.
- The seizure of eXch's servers and assets worth €34 million by German law enforcement has raised concerns about the use of blockchain technology for illicit activities, such as the laundering of cryptocurrencies like Bitcoin and Ethereum.
- Despite the allegations linking eXch to the Lazarus Group, a North Korean cybercriminal crew, and their involvement in laundering stolen cryptocurrencies from the Bybit exploit, altcoins continue to be trading on this platform, demonstrating the complexity and the grey areas in the finance sector based on crypto and blockchain technology.
