{"id":11897,"date":"2025-05-09T13:22:49","date_gmt":"2025-05-09T11:22:49","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=11897"},"modified":"2025-05-09T13:22:49","modified_gmt":"2025-05-09T11:22:49","slug":"germany-uncovers-38-million-in-cryptocurrency-tied-to-bybit-hack-via-exch-exchange","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/05\/09\/germany-uncovers-38-million-in-cryptocurrency-tied-to-bybit-hack-via-exch-exchange\/","title":{"rendered":"Germany Uncovers $38 Million in Cryptocurrency Tied to Bybit Hack via eXch Exchange"},"content":{"rendered":"

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German authorities confiscated 34 million euros ($38 million) in cryptocurrency from eXch, a cryptocurrency platform purportedly utilized to launder assets stolen following Bybit\u2019s unprecedented $1.4 billion breach.<\/p>\n

The confiscation, announced<\/a> on May 9 by Germany\u2019s Federal Criminal Police Office (BKA) and the chief prosecutor\u2019s office in Frankfurt, encompassed multiple digital currencies, including Bitcoin (BTC<\/a>), Ether (ETH<\/a>), Litecoin (LTC<\/a>) and Dash (DASH<\/a>). This action represents the third-largest cryptocurrency seizure in the history of the BKA.<\/p>\n

Additionally, the authorities confiscated eXch\u2019s German server infrastructure, which contained over eight terabytes of data, and deactivated the platform, the announcement elaborated.<\/p>\n

eXch conducted crypto exchanges without AML<\/h2>\n

In the announcement, the BKA characterized eXch as a \u201cswapping\u201d service that permitted users to trade various cryptocurrency assets without enforcing Anti-Money Laundering<\/a> (AML) protocols.<\/p>\n

The platform had been operational since 2014 and was reported to have facilitated approximately $1.9 billion in cryptocurrency transactions, some of which were thought to be of \u201ccriminal origin,\u201d including assets laundered during the Bybit breach<\/a>.<\/p>\n

Illustration of Bybit exploit fund flows through eXch, bridging back and forth between Ether and Bitcoin. Source: TRM Labs<\/em><\/figcaption><\/figure>\n

\u201cAmong other factors, a segment of the $1.5 billion pilfered from the Bybit crypto exchange, hacked on Feb. 21, 2025, is claimed to have been exchanged through eXch,\u201d the authorities stated.<\/p>\n

Multisig, FixedFloat among money laundering incidents<\/h2>\n

According<\/a> to remarks by crypto investigator ZachXBT, eXch was also implicated in laundering millions from other cryptocurrency heists and exploits, including Multisig, FixedFloat, and the $243 million Genesis creditor theft.<\/p>\n

These were in addition to \u201cnumerous phishing drainer services over the previous few years with a refusal to block addresses and freeze mandates,\u201d ZachXBT noted.<\/p>\n

\"Germany,
Source: ZachXBT<\/em><\/figcaption><\/figure>\n

ZachXBT was among the initial security analysts to report on eXch\u2019s connections to laundering $35 million of crypto assets stolen from Bybit shortly after the hack was verified<\/a>.<\/p>\n

Related: <\/strong><\/em>Hacken CEO sees \u2018no shift\u2019 in crypto security as April hacks hit $357M<\/strong><\/em><\/a><\/p>\n

\u201cLazarus Group transferred 5K ETH from the Bybit Hack to a new address and commenced laundering assets via eXch (a centralized mixer) and bridging funds to Bitcoin via Chainflip,\u201d ZachXBT wrote<\/a> in a Telegram post on Feb. 22.<\/p>\n

eXch declared cessation of services by May 1<\/h2>\n

After initially denying participation<\/a> in laundering assets from the Bybit breach, eXch ultimately announced it would discontinue operations<\/a> by May 1 in a Bitcoin Talk post published in mid-April.<\/p>\n

\u201cEven though we have managed to operate despite some unsuccessful attempts to dismantle our infrastructure […], we don\u2019t see any value in functioning in a hostile atmosphere where we are the target of SIGINT [Signals Intelligence] merely due to some individuals misinterpreting our intentions,\u201d it stated.<\/p>\n

Commenting on the seizure, senior public prosecutor Benjamin Krause emphasized the necessity of measures against \u201cswift and anonymous avenues for money laundering for any quantity.\u201d<\/p>\n

\u201cCrypto swapping serves as a vital facet of the underground economy, utilized to obscure tainted funds from unlawful activities such as hacking or trading in pilfered credit card data, thereby rendering them accessible to perpetrators,\u201d he asserted.<\/p>\n

Magazine: <\/strong><\/em>Finally blast into space with Justin Sun, Vietnam\u2019s new national blockchain: Asia Express<\/strong><\/em><\/a><\/p>\n