German Police Confiscate $38 Million in Crypto Linked to Bybit Hack
In a significant operation on May 8, German authorities seized over $38 million worth of cryptocurrency from the platform eXch, tied to the laundering of funds from the Bybit hack in February 2025, where $1.4 billion was stolen. This action by Germany’s Federal Criminal Police Office (BKA) and the Frankfurt Prosecutor’s Office marks the third-largest crypto confiscation in the country’s history. The haul included various digital assets such as Bitcoin, Ether, Litecoin, and Dash, alongside over eight terabytes of data from eXch’s servers in Germany, effectively halting the platform’s operations.
eXch has been identified as a key conduit for laundering the proceeds from the Bybit heist, highlighting its significant role in facilitating illegal cryptocurrency transactions.
eXch’s Involvement in Illegal Activities and Regulatory Non-compliance
Launched in 2014, eXch positioned itself as a privacy-focused service, enabling users to swap cryptocurrencies across different blockchains without needing identity verification, blatantly bypassing Anti-Money Laundering (AML) laws. This lack of compliance made it an attractive option for criminals aiming to launder stolen funds through complex methods such as token swapping, using cross-chain bridges, and multiple wallets to obscure the origins of illicit funds.
The BKA’s investigations suggest eXch laundered upwards of $1.9 billion in cryptocurrency, much of which is believed to be proceeds from criminal activities. ZachXBT, a notable crypto security analyst, has also highlighted eXch’s involvement in laundering funds from other major criminal exploits.
Despite facing warnings and orders from regulators to halt these activities, eXch continued to operate, even processing funds stolen by the North Korean Lazarus Group from the Bybit hack, linking the platform to state-sponsored cybercrime.
Amid accusations of laundering money for the Lazarus Group, eXch initially denied involvement, claiming minimal interaction with the Bybit hack funds. However, facing increased scrutiny and intelligence operations targeting its infrastructure, eXch announced a shutdown by May 1, only to resume operations shortly after, with TRM Labs revealing the platform’s ongoing illicit activities through its active API.
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“German authorities seize $38M in crypto from eXch, linked to the laundering of Bybit hack funds, marking a major crackdown on illegal crypto transactions. #CryptoCrackdown #BybitHack #Cryptocurrency”
