Crypto Mixer eXch Continues Illicit Transactions Despite Official Closure

Despite its official closure, crypto mixer eXch remains active in laundering operations, according to analysts at TRM Labs. The platform's mixed-pool model is a key risk for compliance, as it fragments transactions and makes traceability extremely difficult. eXch has been linked to significant criminal activity, including child abuse material threat actors, and has been involved in laundering millions in stolen funds from Bybit.

Despite its official closure, crypto mixer eXch remains active in laundering operations, according to analysts at TRM Labs. The platform's mixed-pool model is a key risk for compliance, as it fragments transactions and makes traceability extremely difficult. eXch has been linked to significant criminal activity, including child abuse material threat actors, and has been involved in laundering millions in stolen funds from Bybit [1].

The mixed-pool model of eXch is a concern for regulators and compliance professionals. This model allows users to mix their cryptocurrency with other users' funds, making it difficult to trace the origin of the funds. This feature has been exploited by criminal actors to launder illicit funds and evade detection.

eXch has been involved in several high-profile cases of cryptocurrency laundering. In 2024, the platform was linked to the laundering of millions of dollars in stolen funds from the cryptocurrency exchange Bybit. The stolen funds were mixed with other users' funds through the platform's mixed-pool model, making it difficult for authorities to trace the funds [1].

The continued operation of eXch despite its official closure is a concern for the cryptocurrency industry. The platform's mixed-pool model poses a significant risk for compliance and could be used to facilitate further criminal activity. Regulators and compliance professionals must remain vigilant and take action to address this issue.

References:

[1] https://cointelegraph.com/news/samourai-wallet-feds-ask-for-time-consider-dropping-crypto-mixer-case?utm_campaign=rss_partner_inbound&utm_medium=rss&utm_source=rss_feed