In a sweeping crackdown on illicit crypto operations, Frankfurt law enforcement has shuttered the crypto exchange platform eXch, citing its alleged role in laundering funds tied to some of the largest hacks in the digital asset space.
Officials also confirmed the seizure of €34 million (approximately $38.2 million) worth of crypto assets, marking the third-largest crypto confiscation in the history of Germany’s Federal Criminal Police Office (BKA).
The Frankfurt Prosecutor’s Office, in collaboration with the BKA’s cybercrime division, revealed that eXch had been facilitating commercial money laundering and running a criminal trading enterprise. Assets seized included Bitcoin, Ethereum, Litecoin, and Dash.
Investigators claim that eXch played a key role in laundering money from significant cyber thefts, including the $1.5 billion Bybit hack and the $1.4 billion Multisig breach. The platform allegedly helped disguise funds from various phishing campaigns. Crypto investigator ZachXBT was instrumental in uncovering eXch’s involvement, noting the platform’s consistent refusal to block or freeze suspicious wallet addresses associated with these crimes.
Carsten Meywirth, Director of the BKA and head of its cybercrime division, emphasized the significance of the operation: “We’ve secured a record-breaking sum of incriminating cryptocurrencies. This is a direct blow to the underground crypto economy. We remain committed to holding perpetrators accountable.”
Established in 2014, eXch billed itself as a frictionless platform for crypto swaps, operating on the public internet and the dark web. Its appeal among cybercriminals was largely attributed to its lack of anti-money laundering protocols and Know-Your-Customer (KYC) requirements. The platform also claimed it did not store user data, effectively allowing users to mask transaction trails.
Since its inception, authorities estimate eXch has facilitated over $1.9 billion in crypto transactions, much of which is now under scrutiny for ties to illicit activity. Evidence uncovered in the investigation suggests that a portion of the funds from the Bybit hack—one of the most devastating exploits in crypto history—was funnelled through eXch.
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