Frankfurt prosecutors have shut down crypto exchange platform eXch and seized $38.2 million in digital assets amid accusations that the platform was used to launder funds from some of the largest crypto heists in history, including the Bybit and Multisig hacks.
One of Germany’s Largest Crypto Seizures
In an official statement released on May 9, the Frankfurt Prosecutor’s Office confirmed the seizure of approximately 34 million euros ($38.2 million) in cryptocurrency from eXch. The confiscated assets include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Dash (DASH).
Authorities described the takedown as the third-largest crypto seizure ever recorded by Germany’s Federal Criminal Police Office (BKA). eXch is now under investigation for commercial money laundering and operating a criminal trading platform without regulatory compliance.
“We will continue to increase the risk of loss for the underground economy with all the means at our disposal. Our goal remains to hold those responsible accountable,” said Carsten Meywirth, Director of the Federal Criminal Police Office and Head of the Cybercrime Division.
Platform Allegedly Laundered Billions from Major Crypto Hacks
According to renowned blockchain analyst ZachXBT, eXch served as a conduit for laundering funds from multiple high-profile exploits:
- $1.5 billion Bybit hack
- $1.4 billion Multisig hack
- FixedFloat exchange exploit
- $243 million Genesis Creditor theft
- Numerous phishing scams over recent years
Investigators claim eXch refused to block flagged wallet addresses or comply with freeze requests tied to illicit funds, making it a hub for laundering stolen assets.
A Platform Built for Anonymity
Launched in 2014, eXch allowed users to swap cryptocurrencies without KYC (Know Your Customer) verification or anti-money laundering (AML) compliance. The platform was accessible via both the public web and the dark web, and aggressively marketed itself on forums known for criminal activity.
eXch’s structure allowed users to hide transaction trails and move large volumes of crypto anonymously. According to investigators, the platform facilitated around $1.9 billion in crypto transactions, much of which is suspected to have originated from illegal sources.
Ties to the Bybit Hack
One of the most damning allegations links eXch to the $1.5 billion Bybit exploit that occurred on February 21, 2025. Hackers extracted approximately $1.46 billion from the platform’s ETH cold wallets.
Bybit CEO Ben Zhou confirmed that nearly 30% of the stolen funds remain untraceable, while 84.5% were reportedly converted to Bitcoin via the cross-chain protocol THORchain. Frankfurt authorities now suspect eXch was one of the tools used to process and obscure a large portion of these funds.
Global Crackdown on Crypto Laundering
The takedown of eXch underscores a broader global effort to target crypto platforms that facilitate illicit finance. With rising scrutiny on the decentralized finance (DeFi) and exchange sectors, regulators and law enforcement agencies are increasingly collaborating to combat blockchain-based crime.
As investigations continue, it remains unclear whether criminal charges will be brought against eXch’s operators. However, the platform’s shutdown sends a strong message: crypto anonymity will no longer serve as a shield for financial crime in Europe.
