German Authorities Seize 34 Million Euros in Crypto from eXch Platform

German authorities have taken significant action against a cryptocurrency platform suspected of facilitating money laundering. The Federal Criminal Police Office (BKA) and Frankfurt’s main prosecutor’s office announced the seizure of 34 million euros ($38 million) in cryptocurrency from eXch, a platform allegedly used to launder funds stolen during the record-breaking $1.4 billion hack of Bybit. The seizure, which included multiple crypto assets such as Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Dash (DASH), is the third-largest crypto confiscation in the BKA’s history.

The authorities also seized eXch’s German server infrastructure, which contained extensive data totaling over eight terabytes, and shut down the platform. eXch was described as a “swapping” service that allowed users to exchange various crypto assets without implementing Anti-Money Laundering (AML) measures. The platform, which has been operational since 2014, reportedly facilitated an estimated $1.9 billion in crypto transfers, some of which are believed to be of criminal origin, including assets laundered during the Bybit hack.

According to the authorities, a portion of the $1.5 billion stolen from the Bybit crypto exchange, which was hacked on February 21, 2025, is said to have been exchanged via eXch. This revelation underscores the platform’s role in laundering funds from various crypto thefts and exploits, including those from Multisig, FixedFloat, and the $243 million Genesis creditor theft. Security analysts, including ZachXBT, have been instrumental in reporting on eXch’s links to laundering crypto assets stolen from Bybit soon after the hack was confirmed.

ZachXBT, among the first to report on eXch’s involvement, detailed how Lazarus Group transferred 5,000 ETH from the Bybit Hack to a new address and began laundering funds via eXch, a centralized mixer, and bridging funds to Bitcoin via Chainflip. Despite initially denying involvement in laundering funds from the Bybit hack, eXch eventually announced it would cease operations by May 1, citing a hostile environment and the targeting of its infrastructure.

Benjamin Krause, the senior public prosecutor, emphasized the importance of taking action against “quick and anonymous opportunities for money laundering for any amount.” He stated that crypto swapping is an essential component of the underground economy, used to conceal incriminated funds from illegal activities such as hacking or trading in stolen payment card data, thus making them available to perpetrators. This seizure highlights the ongoing efforts by law enforcement to combat cryptocurrency-related crimes and the importance of implementing robust AML measures in the crypto industry.