German prosecutors have dismantled the crypto-swapping platform eXch and seized over $38 million worth of digital assets, alleging the exchange served as a key hub for criminal activity on the darknet. The enforcement action—disclosed on Friday by the Frankfurt Prosecutor General’s Office—marks one of the country’s most significant crypto crackdowns to date.
eXch, which began operations in 2014, marketed itself as a privacy-first platform for cryptocurrency swaps. It notably operated without any anti-money laundering (AML) or know-your-customer (KYC) protocols—a feature that authorities now say made it an attractive tool for bad actors seeking to obscure the flow of illicit funds.
Law enforcement executed the operation on April 30, seizing a range of cryptocurrencies including Bitcoin, Ether, Litecoin, and Dash. In addition to the €34 million ($38.2 million) in crypto, authorities also confiscated more than eight terabytes of data and the platform’s German server infrastructure.
According to investigators, eXch openly promoted its lack of compliance on forums tied to the criminal underground economy, explicitly catering to users looking to avoid regulatory scrutiny. While the platform had previously framed its model as a commitment to privacy rather than an invitation to illegality, prosecutors say the evidence tells a different story.
The takedown comes amid growing global efforts to regulate crypto platforms and prevent their use in cybercrime.
$1.9B in Crypto Funneled Through eXch, Tied to North Korean Hackers
German prosecutors revealed that nearly $1.9 billion in cryptocurrency was transacted through eXch, much of it believed to be linked to illicit sources. In an official statement, authorities confirmed that a portion of the $1.4 billion stolen in the Bybit hack—attributed to North Korea’s Lazarus Group—was laundered through the platform.
“The operators of eXch are therefore suspected of commercial money laundering and the operation of a criminal trading platform on the Internet,” German officials said, following the seizure of €34 million ($38.2 million) and the platform’s shutdown.
Though eXch publicly announced its voluntary shutdown on May 1, authorities had already acted preemptively in late April, securing critical infrastructure to prevent further obfuscation of funds. The exchange’s farewell message referenced a “transatlantic operation” aimed at dismantling its team, citing potential charges ranging from money laundering to terrorism financing.
In defense of its practices, eXch claimed it was committed to digital privacy and accused the broader compliance regime of being more performative than protective. “Privacy is not a crime,” the operators stated, criticizing AML/KYC protocols as ineffective and symbolic.
Quick Facts
- German authorities have dismantled the eXch crypto-swapping platform and seized over $38 million in digital assets.
- eXch operated without AML or KYC protocols, making it a major laundering tool for darknet activity.
- Nearly $1.9 billion in crypto was processed through the platform, including funds tied to North Korea’s Lazarus Group.
- Authorities seized 8TB of data and server infrastructure in a coordinated April 30 raid, days before eXch’s announced shutdown.
