eXch Shuts Down After Bybit Hack, $1.4B Stolen

Coin WorldSaturday, Apr 19, 2025 5:16 am ET
1min read

eXch, a cryptocurrency exchange platform, has announced its permanent shutdown effective May 1, 2025. This decision comes in the wake of allegations that the platform processed stolen funds from the Bybit exchange hack, which occurred in February 2025. The hack resulted in the theft of $1.4 billion in assets, and subsequent blockchain analysis traced 5,000 ETH from the breach to eXch. The platform then converted these funds into bitcoin and linked them to a centralized mixer, refusing to comply with Bybit’s requests to freeze the assets due to its privacy policy.

eXch, launched in 2018, offered instant swaps for cryptocurrencies such as Bitcoin, Ethereum, and Monero. Its no KYC (Know Your Customer) policy attracted a global user base, as users were not required to identify themselves. However, this policy also raised concerns about potential misuse and money laundering. The platform's involvement in the Bybit hack brought these issues to the forefront, leading to increased scrutiny from regulatory authorities.

On April 18, 2025, eXch announced its decision to shut down, citing “external pressures” as the reason. The exchange disabled its trading and deposit functions immediately and urged users to withdraw their funds before the May 1 deadline. The platform published a withdrawal tutorial on its website to assist users in retrieving their assets, warning that any funds not withdrawn by the deadline would become inaccessible.

The closure of eXch will impact thousands of users who relied on the platform for cryptocurrency transactions. The exchange maintained that it had been operating within legal boundaries and denied knowingly allowing illicit transactions. However, its no KYC policy and refusal to comply with Bybit’s requests to freeze the stolen assets have raised suspicions about its involvement in money laundering activities.

The Bybit hack and eXch’s subsequent shutdown have highlighted the vulnerabilities of privacy-focused exchanges and the regulatory gaps in the cryptocurrency sector. Other exchanges have begun to beef up their compliance measures and anti-money laundering protocols in response to these incidents. Regulators are also paying closer attention to privacy-focused platforms, introducing new rules to address money laundering risks in the crypto industry.

The fallout from the Bybit hack continues, with investigations spanning several jurisdictions. However, no funds have been recovered, and eXch’s exit from the market has complicated efforts to track the stolen assets. Users of eXch are encouraged to act quickly and withdraw their funds before the platform stops processing transactions on May 1. The exchange’s support team is available to assist with withdrawals until the shutdown date.