eXch, a cryptocurrency exchange, has made headlines as it announced its decision to cease operations on May 1 following allegations that it was involved in laundering funds from a hack on Bybit. In an official statement on April 17, eXch revealed that the majority of its management team had voted to "cease and retreat" in response to reports linking the exchange to the North Korean Lazarus Group, which allegedly used eXch to launder approximately $35 million of the funds stolen in a $1.4 billion exploit on Bybit.

The exchange disclosed that it had been the target of an "active transatlantic operation" aimed at shutting it down and potentially pursuing legal actions. Despite managing to continue operations despite some attempts to disrupt its infrastructure, eXch decided to shut down, citing a hostile environment where they were being targeted due to misinterpretations of their goals.

Initially denying the accusations of laundering digital assets for the Lazarus Group, eXch eventually admitted to processing an "insignificant portion of funds" from the February hack. Members of the eXch management emphasized the exchange's commitment to user privacy as they announced the shutdown, criticizing other exchanges for imposing "nonsensical policies" in their fight against money laundering.

The Bybit hack, one of the largest in the history of the cryptocurrency industry, resulted in over $5 billion in withdrawals, including the stolen funds. Bybit CEO Ben Zhou had initially expressed confidence in covering the losses if the funds weren't recovered. However, the exchange later announced the closure of some Web3 services and its non-fungible token marketplace.

As of April 10, Bybit had managed to regain its market share achieved before the hack, standing at around 7%. The exchange also offered rewards totaling over $2 million to bounty hunters who provided information leading to the freezing of funds traceable to other platforms, estimated to make up approximately 89% of the $1.4 billion stolen as of March 20.

The cryptocurrency community continues to monitor developments surrounding the eXch shutdown and the aftermath of the Bybit hack. The incident serves as a stark reminder of the risks and challenges faced in the digital asset space, highlighting the importance of robust security measures and regulatory compliance to safeguard users' funds and maintain trust in the ecosystem.

Source: https://cointelegraph.com/news/exch-shutting-down-reports-hacked-funds?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound