German authorities shut down eXch amid $1.9 billion cash laundering allegations, seizes $38 million in crypto
German regulation enforcement has shut down the crypto change eXch and seized digital belongings valued at over $38 million, in line with a Might 9 assertion.
In a joint operation, the Frankfurt Predominant Public Prosecutor’s Workplace and the Federal Legal Police Workplace (BKA) confirmed that the seizure occurred on April 30, 2025. The transfer adopted an in depth investigation into the platform’s failure to adjust to anti-money laundering (AML) obligations.
The officers mentioned eXch operated with out accumulating person information or verifying identities, permitting nameless and untraceable transactions.
Based on the assertion, Bitcoin, Ethereum, Litecoin, and Sprint had been among the many digital belongings confiscated from the platform. The authorities additionally took management of the change’s native server infrastructure and terminated its companies.
The German officers estimated that eXch facilitated the motion of practically $1.9 billion since its launch, with robust indications {that a} portion of those funds got here from legal sources. That features suspected ties to the notorious $1.5 billion Bybit theft.
The prosecutors are actually accusing the platform’s operators of working an unlawful on-line buying and selling service and interesting in business cash laundering.
Dr. Benjamin Krause, Chief Public Prosecutor on the Central Workplace for Combating Cybercrime (ZIT), famous that crypto-swapping companies like eXch are routinely exploited to cover earnings from cyberattacks and stolen fee information.
Contemplating this, he mentioned:
“It’s due to this fact all of the extra essential that regulation enforcement businesses constantly take motion towards such fast and nameless alternatives for cash laundering of any quantity and deprive perpetrators of the proceeds of the crime.”
Is eXch down?
Though eXch introduced its closure on Might 1, claiming it was underneath worldwide stress, German investigators mentioned they used the timing to safe proof and advance their probe.
Nonetheless, blockchain analytics agency TRM Labs just lately reported that eXch continued working in components regardless of the claimed shutdown.
The agency mentioned API entry remained lively for companions, and on-chain exercise revealed suspicious actions. Notably, over $300,000 in funds linked to little one sexual abuse materials (CSAM) reportedly handed via the platform’s infrastructure.
It added:
“It’s unclear whether or not eXch will fully shut down its remaining API operations or resume operations as a brand new service. Nonetheless, the remaining API entry continues to offer anonymization infrastructure for risk actors.”
