Germany's Federal Criminal Police Office (BKA) has taken down the cryptocurrency exchange platform 'eXch,' confiscating its server infrastructure and shutting it down in a major crackdown on suspected money laundering operations linked to cybercrime.
Part of the operation involved the authorities seizing eight terabytes of data and cryptocurrencies such as Bitcoin, Ether, Litecoin, and Dash, with a total value of about $38 million. The BKA reported that this is the third-largest seizure of digital currencies in the history of the agency.
The official release by the BKA indicates that 'eXch' did not adhere to obligatory 'know-your-customer' (KYC) regulations, and in doing so, it created an environment conducive for money laundering by cybercrime groups and other criminal organizations.
"Since its launch, approximately $1.9 billion's worth of cryptocurrencies have passed through the service," the announcement unveiled.
The platform is also accused of being at the center of money laundering Bitcoin of illicit origin. Significantly, investigators suspect that some of the $1.5 billion taken in the record-breaking February 21, 2025 hack of crypto exchange Bybit was laundered through 'eXch.' The historic heist was blamed on the notorious North Korean state-sponsored hacking group 'Lazarus' by several blockchain forensics experts.
In growing pressure and under increased scrutiny, 'eXch' planned to close all operations effective May 1, 2025. In defiance of this, the BKA quickly acted, conducting the seizure to avoid destruction of important evidence and to help track stolen funds.
German officials have indicated that the operators of the platform are still under active investigation. They are accused of commercial money laundering and operating a criminal online trading platform. "Although we had only a short time after the announcement of the shutdown of eXch, we were able to obtain comprehensive evidence that resulted in today's enforcement action," the BKA said.
Although 'eXch' is currently off the air, the confiscated infrastructure and information should prove crucial in pursuing continued efforts to trace criminal transactions and pinpoint the cyber-criminals who made use of the service.
This action reiterates Germany's increasing determination to stamp out cryptocurrency-facilitated crime and enhance international collaboration in combating digital financial fraud.
0 Comments