German authorities, including the Frankfurt am Main Public Prosecutor’s Office, the Central Office for the Combat of Internet Crime (ZIT), and the Federal Criminal Police Office (BKA), have closed down the cryptocurrency exchange eXch based in Germany. The shutdown took place on April 30, during which the authorities seized the exchange’s server infrastructure and about €34 million ($38.5 million) worth of cryptocurrency assets.
The confiscated crypto assets included Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Dash (DASH), along with over eight terabytes of data. Carsten Meywirth, the Head of the Cybercrime Department of the German Federal Criminal Police Office, highlighted the significant scale of operations in seizing illicit cryptocurrencies and shutting down a platform involved in digital money laundering.
eXch was accused of being used for laundering illegal funds due to its lack of Know Your Customer (KYC) requirements and its availability on both the Clearnet and Darknet. The platform was advertised on criminal forums, openly declaring its absence of anti-money laundering measures. Its anonymity features, such as no identity verification and data storage, made it attractive for concealing financial transactions.
The authorities stated that eXch facilitated approximately $1.9 billion in crypto transfers since its establishment and suspect that it received criminally sourced Bitcoin. It was also believed to have laundered a substantial portion of the $1.5 billion stolen from the Bybit cryptocurrency exchange during the February hack attributed to North Korea’s Lazarus Group.
Amid allegations regarding the handling of Bybit’s funds, eXch announced its voluntary closure on May 1, citing a challenging environment and the pressure from a cross-border operation involving accusations of money laundering and terrorism as reasons for the shutdown. However, just before its self-closure, German authorities intervened and seized the exchange, gathering significant evidence and traces. The Frankfurt Prosecutor’s Office has not disclosed further details regarding potential charges or arrests linked to the operation.