Germany seizes $38M in crypto from Bybit hack-linked eXch exchange

German legislation enforcement seized 34 million euros ($38 million) in cryptocurrency from eXch, a cryptocurrency platform allegedly used to launder funds stolen after Bybit’s record-breaking $1.4 billion hack.

The seizure, announced on Might 9 by Germany’s Federal Felony Police Workplace (BKA) and Frankfurt’s fundamental prosecutor’s workplace, concerned a number of crypto belongings, together with Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Sprint (DASH). The transfer marks the third-largest crypto confiscation within the BKA’s historical past.

The authorities additionally seized eXch’s German server infrastructure with over eight terabytes of information and shut down the platform, the announcement added.

eXch exchanged crypto with out AML

Within the assertion, the BKA described eXch as a “swapping” service that allowed customers to trade numerous crypto belongings with out implementing Anti-Money Laundering (AML) measures.

The platform had operated since 2014 and reportedly facilitated about $1.9 billion in crypto transfers, a few of which have been believed to be of “prison origin,” together with belongings laundered throughout the Bybit hack.

“Amongst different issues, a portion of the $1.5 billion stolen from the Bybit crypto trade, which was hacked on Feb. 21, 2025, is alleged to have been exchanged by way of eXch,” the authorities wrote.

Multisig, FixedFloat amongst laundering instances

According to a submit by crypto sleuth ZachXBT, eXch was additionally concerned in laundering tens of millions of funds from different crypto thefts and exploits, together with Multisig, FixedFloat and the $243 million Genesis creditor theft.

These have been along with “numerous phishing drainer companies over the previous few years with refusal to dam addresses and freeze orders,” ZachXBT stated.

ZachXBT was among the many first safety analysts to report on eXch’s hyperlinks to laundering $35 million of crypto belongings stolen from Bybit quickly after the hack was confirmed.

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“Lazarus Group transferred 5K ETH from the Bybit Hack to a brand new tackle and started laundering funds by way of eXch (a centralized mixer) and bridging funds to Bitcoin by way of Chainflip,” ZachXBT wrote in a Telegram submit on Feb. 22.

eXch introduced termination of companies by Might 1

After initially denying involvement in laundering funds from the Bybit hack, eXch finally announced it would cease operations by Might 1 in a Bitcoin Discuss submit revealed in mid-April.

“Though we’ve got been in a position to function regardless of some failed makes an attempt to close down our infrastructure […], we don’t see any level in working in a hostile surroundings the place we’re the goal of SIGINT [Signals Intelligence] just because some folks misread our targets,” it wrote.

Addressing the seizure, senior public prosecutor Benjamin Krause harassed the significance of motion towards “fast and nameless alternatives for cash laundering for any quantity.”

“Crypto swapping is an integral part of the underground economic system, used to hide incriminated funds from unlawful actions similar to hacking or buying and selling in stolen cost card information, thus making them obtainable to perpetrators,” he stated.

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