German authorities have confiscated around $38 million worth of cryptocurrency from an exchange known as eXch, a platform suspected of helping cybercriminals launder stolen funds. This includes money linked to the $1.4 billion Bybit hack that happened earlier this year.
The bust was announced on May 9, 2025 by Germany’s Federal Criminal Police Office (BKA) and Frankfurt’s main prosecutor’s office. Alongside the crypto, investigators also seized more than 8 terabytes of server data, effectively shutting down the platform.
eXch had been active since 2014, offering a “crypto swapping” service where users could exchange one coin for another—no identity checks, no limits, and no questions asked. Authorities say this made it the perfect tool for laundering money from phishing scams, thefts, and large-scale hacks. In total, the platform is believed to have processed nearly $1.9 billion in transactions.
A large chunk of that money likely came from the February 2025 Bybit hack, where hackers stole $1.5 billion. Crypto investigator ZachXBT traced around $35 million of those stolen funds to eXch. He believes the Lazarus Group, a hacking organization linked to North Korea, used eXch to swap Ethereum for Bitcoin and hide the trail. From there, the funds were moved using a bridging platform called Chainflip.
But Bybit wasn’t the only victim. ZachXBT also linked eXch to other incidents, including the Multisig hack, the FixedFloat exploit, and a $243 million theft involving Genesis creditors. He claims eXch ignored scam reports, refused to block suspicious wallets, and made it easy for criminals to wash stolen funds.
When the accusations first surfaced, eXch denied any involvement. But by April, they announced they were shutting down by May 1. In a statement posted on a crypto forum, the team said they felt “misunderstood” and blamed increased surveillance for their exit.
German officials didn’t buy that excuse. According to senior prosecutor Benjamin Krause, crypto-swapping services like eXch play a big role in the dark side of the crypto economy. They help criminals turn stolen digital assets into clean money, making it harder for law enforcement to trace illegal activity.
This $38 million seizure is now one of the largest crypto takedowns in German history. More importantly, it sends a message that law enforcement is cracking down on crypto platforms that ignore regulations.
The crypto world has always operated with a bit of mystery, but as crimes grow bigger, governments are tightening the net. If a platform isn’t following anti-money laundering rules, it’s only a matter of time before it lands in serious trouble.
Entities like Riot Platforms Inc. (NASDAQ: RIOT) are likely to take note and tighten their KYC policies in order to avoid inadvertently being accused of helping criminals to launder their loot by, for instance, acquiring shares that they later dispose of as legitimately earned revenue.
About BillionDollarClub
BillionDollarClub (“BDC”) is a specialized communications platform with a focus on the biggest and brightest companies covered by IBN. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, BDC is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today’s market, BDC brings its clients unparalleled recognition and brand awareness.
BDC is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from BillionDollarClub, text “Billion” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.BillionDollarClub.com
Please see full terms of use and disclaimers on the BillionDollarClub website applicable to all content provided by BDC, wherever published or re-published: https://www.BillionDollarClub.com/Disclaimer
BillionDollarClub
Los Angeles, CA
www.BillionDollarClub.com
310.299.1717 Office
Editor@BillionDollarClub.com
BillionDollarClub is powered by IBN
