Germany Conducts Operation to Dismantle eXch Cryptocurrency Exchange and Confiscate Servers

The Federal Criminal Police Office of Germany (BKA) has initiated a significant crackdown on the eXch cryptocurrency exchange by dismantling its server infrastructure amid accusations of facilitating money laundering derived from cybercrime.

In this extensive operation, authorities recovered eight terabytes of data along with cryptocurrency assets, including Bitcoin, Ether, Litecoin, and Dash, collectively estimated to be worth around $38 million. This operation marks one of the largest seizures of digital assets in the history of the BKA.

The BKA highlighted that eXch failed to adhere to crucial ‘know-your-customer’ (KYC) regulations, which enabled the laundering of funds from criminal activities and other illicit operations. According to their statement, since its launch, eXch has been linked to approximately $1.9 billion in cryptocurrency transactions.

Furthermore, investigations revealed that eXch might have specifically processed Bitcoin acquired from unlawful sources. Notably, part of the proceeds linked to the notorious $1.5 billion hack of the Bybit exchange on February 21, 2025, attributed to the infamous Lazarus hacking group from North Korea, is suspected to have been laundered via eXch.

Despite being accused of having a role in the laundering scheme, eXch’s operators initially denied such allegations, contending that irregular fund movements detected through their platform were only isolated incidents. However, under increasing pressure and scrutiny, the exchange announced its decision to cease operations on May 1, 2025.

The BKA’s actions to seize the infrastructure of eXch, even with its cessation of services, are crucial in tracing the laundered assets and identifying the involved cybercriminals. Additionally, the operators are under investigation for commercial money laundering and running a criminal online trading platform.

According to the BKA, the timeframe since eXch’s closure announcement was limited, yet authorities managed to gather substantial evidence that led to the execution of the operation.