German Authorities Shut Down eXch and Seize $38.2M in Crypto Assets

Highlights:

• Authorities have seized crypto from eXch for alleged laundering of stolen assets tied to recent hacks.
• eXch was linked to major hacks, such as the Bybit hack, through anonymous crypto swaps.
• Authorities claim the platform allowed users to hide transactions without identity checks or record keeping.

The law enforcement officials of Germany have today shut down eXch, a crypto platform, and seized digital assets worth $38.2 million. Authorities enforced the operation after allegations of money laundering linked to several high-profile cyberattacks. The Prosecutor’s Office, the Central Office for Combating Internet Crime (ZIT), and the Federal Criminal Police Office (BKA) carried out the operation. The cryptocurrencies seized include BTC, ETH, Litecoin, and Dash.

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JUST IN: German authorities seized €34 million in #crypto from platform eXch, allegedly used to launder funds from Bybit’s $1.4 billion hack—the third-largest #crypto seizure in BKA history.

— CryptOpus (@ImCryptOpus) May 9, 2025

The authorities also seized the servers of the company. Authorities reported that since its launch in 2014, eXch has transacted approximately $1.9 billion worth of crypto transfers. Officials suspected a large number of those transactions included assets linked to criminal activity. Officials believe the funds came from large crypto hacks, which they hoped to track and stop.

According to the BKA, eXch provided a swapping service that enabled users to exchange various digital currencies without meeting identification or compliance requirements. The platform operated on the public domain as well as on the dark web. This allowed it to attract users seeking to hide financial transactions.

Officials said eXch marketed itself through sites often associated with the dark web and did not follow procedures such as Know-Your-Customer verification. The platform claimed it did not retain any user information, which made it easier for users to conceal transaction trails.

eXch Tied to Major Crypto Heists Including Bybit and Multisig Hacks

Investigators linked eXch to the laundering of funds from several cryptocurrency heists, including the heist from Bybit. The February 21 Bybit hack involved the theft of $1.5 billion from its Ethereum cold wallet. According to ZachXBT, a portion of the stolen funds was routed through eXch. He reported that 5,000 ETH was transferred to a new wallet and then moved through eXch and Chainflip to convert it into Bitcoin.

Apart from the Bybit exploit, eXch was also allegedly utilized to launder the proceeds from other incidents. According to ZachXBT, eXch would not block addresses related to these incidents. Moreover, it did not cooperate with freeze orders. He also highlighted that the platform had been used for laundering funds from several phishing-related scams over the years.

Officials Respond as eXch Shuts Down

Authorities revealed that eXch had become a key tool for those seeking to avoid detection while moving stolen crypto assets. Senior public prosecutor Benjamin Krause explained that crypto swapping played a key role in masking illegal gains from such activities as hacking and the sale of stolen payment data. He stated that such platforms provide fast, anonymous possibilities for illegal conversion of funds, and so criminals can hide the source of the money.

Director of the BKA’s Cybercrime Division, Carsten Meywirth, confirmed that the operation had resulted in the seizure of millions in cryptocurrencies believed to be linked to crimes. He said that they would continue to suppress the profits from the underground economy less profitable. In addition, they aim to hold those responsible accountable for their actions.

eXch announced in April that it would cease operations by the start of this month. It stated in a forum post that continued pressure and surveillance made it difficult to operate.

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