Crypto Exchange eXch Accused of Laundering $35M From Bybit Hack

The crypto world is abuzz with allegations against eXch, a cryptocurrency exchange, which is accused of processing $35 million in stolen funds from the recent Bybit hack. This incident has raised concerns about the exchange's involvement in money laundering and its ties to North Korea's Lazarus Group.

eXch has swiftly denied these allegations, stating in a statement on the Bitcointalk forum that it is not involved in money laundering for Lazarus or North Korea. The exchange reassured users that its operations remain unaffected and all funds are secure. However, it admitted to processing a small portion of the hacked funds, attributing it to an isolated incident. eXch also pledged to donate any transaction fees from these funds for public benefit.

The allegations against eXch have intensified following reports from blockchain investigators and social media discussions. On-chain analyst ZachXBT alleged that the exchange had facilitated the laundering of $35 million linked to the Bybit hack. Blockchain security firm SlowMist reported significant ETH conversions into other cryptocurrencies on eXch's platform, while Nick Bax from the Security Alliance estimated that the exchange had processed nearly $30 million in transactions connected to North Korea's Lazarus Group.

Despite eXch's denial, Bybit CEO Ben Zhou has called for collaboration, stressing that the issue extends beyond the interests of individual firms. Zhou has committed to exhausting every possible route to recover the stolen funds tied to the Lazarus Group hack. Bybit's strategy involves launching a bounty program, working closely with law enforcement agencies, and collaborating with the Ethereum Foundation to identify effective recovery solutions.

This ongoing controversy has raised questions about the role of cryptocurrency exchanges in preventing money laundering and the need for stricter regulations to ensure the security of user assets. As the crypto industry continues to grow, it is crucial for exchanges to adopt robust measures to combat illicit activities and maintain the trust of their users.