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Germany's BKA Shuts Down eXch Crypto Exchange Over Money Laundering Allegations

Germany's Federal Criminal Police (BKA) successfully seized the eXch crypto exchange, seizing €34M in crypto and 8TB of data, marking a significant blow to cybercrime and money laundering operations.

Germany's BKA Shuts Down eXch Crypto Exchange Over Money Laundering Allegations

TL;DR

  • German police shut down eXch crypto exchange over money laundering and illegal trading allegations.
  • €34M in crypto and 8TB of data seized, marking a significant blow to cybercrime operations.
  • Lazarus APT’s stolen $1.5B from Bybit was partly exchanged via eXch, highlighting its role in criminal activities.

Main Content

eXch crypto exchange

Germany’s BKA Shuts Down eXch Crypto Exchange

On April 30, 2025, Germany’s Federal Criminal Police (BKA), in collaboration with ZIT and Dutch FIOD, successfully shut down the eXch crypto exchange (eXch.cx). The operation was carried out due to allegations of money laundering and illegal trading activities. This seizure is expected to aid ongoing cybercrime investigations significantly.

Seizure Details

The German law enforcement agencies seized €34 million in cryptocurrency and 8 terabytes of data from the platform. This marks the third-largest crypto asset seizure ever conducted by German authorities.

Platform Operations and Allegations

The eXch crypto exchange has been operational since 2014, facilitating anonymous crypto swaps via both clearnet and darknet. By avoiding Anti-Money Laundering (AML) rules, the platform allegedly enabled the laundering of approximately $1.9 billion.

“Users were neither required to identify themselves to the service, nor was user data stored there. Crypto swapping via eXch was therefore particularly suitable for concealing financial flows. Since the service was launched, crypto assets worth an estimated 1.9 billion US dollars have been transferred. There is suspicion that eXch, in particular, accepted Bitcoin of criminal origin.”

BKA Press Release

Connection to Lazarus APT Heist

In February 2025, the Lazarus APT group executed the largest cryptocurrency heist ever, stealing $1.5 billion from the Bybit exchange. A portion of these stolen funds was reportedly exchanged via eXch, further implicating the platform in criminal activities.

Swift Law Enforcement Action

Although eXch announced plans to shut down on May 1, 2025, law enforcement acted swiftly to seize the platform’s data and crypto assets before the planned closure. The operators of eXch cited a hostile environment and surveillance as reasons for their decision to cease operations.

“Recently, we received confirmation of information we had previously, thanks to some friends we have even in the state intelligence sector, that our project is the subject of an active transatlantic operation aimed at forcibly shutting our project down and prosecuting us for ‘money laundering and terrorism.’”

eXch Operators on BitcoinTalk Forum

Importance of Crypto Swapping in Underground Economy

Crypto swapping is a crucial component of the underground economy, used to conceal funds from illegal activities such as hacking or trading in stolen payment card data. This makes it essential for law enforcement agencies to take consistent action against such platforms.

“It is therefore all the more important that law enforcement agencies consistently take action against such quick and anonymous opportunities for money laundering of any amount and deprive criminals of the proceeds of the crime.”

Dr. Benjamin Krause, Chief Public Prosecutor at the Central Intelligence Agency (ZIT)

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Conclusion

The shutdown of the eXch crypto exchange by German authorities highlights the ongoing battle against cybercrime and money laundering. This operation not only disrupted a significant criminal platform but also provided valuable data that could aid in further investigations. As crypto swapping continues to be a vital tool for cybercriminals, consistent and coordinated efforts by law enforcement agencies worldwide are crucial to combat such illegal activities.

References

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