Crypto Exchange eXch Shuts Down Amid Global Probe into $1.4B Money Laundering Scandal
Exchange cites transatlantic operation and “SIGINT targeting” following Lazarus Group allegations
Cryptocurrency exchange eXch has announced it will permanently shut down on May 1, following serious allegations that it was used to launder stolen crypto funds linked to the $1.4 billion Bybit hack.
The closure marks the latest twist in what appears to be a widening investigation into North Korea’s Lazarus Group, a cybercrime syndicate that allegedly funneled $35 million through the exchange after the February attack on Bybit.
A “Cease and Retreat” Strategy in the Face of Global Pressure
In an official statement released on April 17, eXch said the majority of its leadership team had voted to cease operations and retreat from the industry, citing an “active transatlantic operation” allegedly targeting its infrastructure and leadership for takedown.
“We don’t see any point in operating in a hostile environment where we are the target of SIGINT [Signals Intelligence],” said the eXch team.
“Some people misinterpret our goals.”
Although eXch previously denied accusations of laundering funds for the Lazarus Group, it later admitted to processing a “minor portion” of the funds from the Bybit exploit. Still, executives emphasized their commitment to privacy and accused rival exchanges of “abusing customers with nonsensical policies” in the name of compliance.
The Bybit Hack: A Blow to the Crypto World
The Bybit breach, carried out earlier this year, is now considered one of the largest crypto hacks in history. It triggered over $5 billion in user withdrawals, sending shockwaves across the digital asset space.
Bybit CEO Ben Zhou initially reassured users, stating that the exchange could “cover the loss” if necessary. However, the platform eventually shut down several of its Web3 services, including its NFT marketplace.
Despite the incident, Bybit has since rebounded, regaining 7% of its pre-hack market share as of April 10. The company also offered over $2 million in bounties for information leading to the recovery of stolen funds, which had reached a recovery rate of 89% by March 20.
What’s Next for Crypto Compliance?
The shutdown of eXch raises urgent questions about the future of crypto regulation, exchange accountability, and the role of privacy-focused platforms in an increasingly scrutinized environment. The incident adds to global fears that rogue states and cybercrime rings are leveraging decentralized platforms to fund illicit operations.
As the eXch case unfolds, industry observers and regulators alike will be watching for new precedents in enforcement, as crypto exchanges walk the fine line between privacy and compliance.
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