In a significant move against cryptocurrency-related crime, German authorities have seized €34 million (approximately $38 million) in digital assets from the crypto exchange eXch. The platform is alleged to have facilitated the laundering of funds stolen during the record-breaking $1.5 billion hack of the Bybit exchange in February 2025. The operation, led by the Federal Criminal Police Office (BKA) and Frankfurt’s Public Prosecutor’s Office, also involved the confiscation of over eight terabytes of data and the shutdown of eXch’s infrastructure.
eXch, which operated since 2014, was known for allowing users to swap cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Dash without implementing Anti-Money Laundering (AML) measures or Know Your Customer (KYC) protocols. This lack of oversight made it an attractive platform for cybercriminals seeking to launder illicit funds. Investigations revealed that eXch had processed approximately $1.9 billion in crypto transactions, some of which were believed to be of criminal origin, including assets laundered during the Bybit hack.
The Bybit hack, attributed to the North Korean-linked Lazarus Group, involved the theft of approximately 400,000 Ethereum tokens. Following the breach, eXch was identified as a platform used to launder a portion of the stolen funds. Despite requests from Bybit to freeze the compromised assets, eXch allegedly refused to cooperate, raising concerns about its role in facilitating the movement of illicit funds.
In response to the mounting pressure and scrutiny, eXch announced its decision to cease operations on April 17, 2025, citing an “active transatlantic operation” targeting the platform. However, authorities had already initiated their investigation and seized the platform’s infrastructure before its planned shutdown.
This action underscores Germany’s commitment to combating financial crimes in the cryptocurrency sector. The seizure of €34 million in crypto assets marks one of the largest confiscations in the country’s history and serves as a warning to other platforms that may be facilitating illicit activities. As the investigation continues, authorities are focusing on dismantling the infrastructure used by cybercriminals and preventing further misuse of digital currencies.
