German law enforcement has made a significant breakthrough in the fight against cryptocurrency-related crimes by seizing 34 million euros ($38 million) in digital assets from the cryptocurrency platform eXch. The operation was part of an investigation into the platform's alleged involvement in laundering funds stolen in the aftermath of Bybit's record-breaking $1.4 billion hack.
The seizure, announced by Germany's Federal Criminal Police Office (BKA) and Frankfurt's main prosecutor's office on May 9, involved a variety of cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Dash (DASH). This marks the third-largest crypto confiscation in the history of the BKA.
eXch, described by the BKA as a "swapping" service, allowed users to exchange various cryptocurrencies without implementing Anti-Money Laundering (AML) measures. The platform had been operating since 2014 and reportedly facilitated around $1.9 billion in crypto transfers, some of which were suspected to have originated from criminal activities, including assets laundered during the Bybit hack.
According to authorities, a portion of the funds stolen from the Bybit exchange during the hack in February 2025 had been exchanged via eXch. The platform was also linked to laundering funds from other crypto thefts and exploits, including incidents involving Multisig, FixedFloat, and the Genesis creditor theft.
ZachXBT, a prominent crypto sleuth, highlighted eXch's involvement in laundering millions of dollars in stolen funds and noted the platform's connections to various phishing schemes over the years. The security analyst was among the first to report on eXch's role in laundering $35 million of crypto assets stolen from Bybit following the hack.
Despite initially denying any involvement in the laundering of funds from the Bybit hack, eXch later announced its decision to cease operations by May 1. In a post on Bitcoin Talk in mid-April, the platform cited pressure from authorities and the need to avoid operating in a hostile environment as reasons for shutting down.
The seizure of eXch's assets and server infrastructure underscores the growing efforts by law enforcement agencies to crack down on illegal activities in the cryptocurrency space. Senior public prosecutor Benjamin Krause emphasized the importance of taking action against platforms that provide quick and anonymous opportunities for money laundering, highlighting the role of crypto swapping in concealing illicit funds from activities such as hacking and trading in stolen payment card data.
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