German Authorities Seize $38 Million in Crypto Linked to Bybit Hack
In a significant blow to cryptocurrency criminals, German law enforcement agencies have announced the seizure of €34 million ($38 million) in cryptocurrency. The assets were confiscated from eXch, a cryptocurrency exchange allegedly used to launder funds stolen during the massive $1.4 billion Bybit hack.
The seizure, a joint operation by the Federal Criminal Police Office (BKA) and Frankfurt’s main prosecutor’s office, involved a range of cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Dash (DASH). This marks the third-largest cryptocurrency confiscation in BKA history, highlighting the growing effectiveness of international cooperation in combating crypto crime.
Authorities also seized eXch’s German server infrastructure, containing over eight terabytes of data, effectively shutting down the platform. This action underscores the determination to disrupt illicit activities within the cryptocurrency ecosystem.
eXch’s Role in Money Laundering
The BKA statement described eXch as a ‘swapping’ service that facilitated the exchange of various cryptocurrencies without implementing Anti-Money Laundering (AML) measures. Operating since 2014, the platform reportedly processed an estimated $1.9 billion in crypto transfers, a significant portion of which is suspected to originate from criminal activities, including the Bybit hack.
Investigators believe a portion of the $1.5 billion stolen from Bybit on February 21, 2025, was laundered through eXch. This highlights the critical need for robust AML compliance within the cryptocurrency industry.
Further Investigations and Implications
Independent crypto sleuth ZachXBT had previously linked eXch to the laundering of millions of dollars from other crypto thefts and exploits, including those targeting Multisig, FixedFloat, and Genesis. eXch’s alleged involvement in these incidents emphasizes the platform’s role as a significant facilitator of criminal activity.
After initially denying its involvement, eXch announced it would cease operations by May 1st. This move came after significant pressure from investigators and public scrutiny. The seizure of assets and the platform’s shutdown send a strong message regarding the consequences of facilitating cryptocurrency money laundering.
Senior public prosecutor Benjamin Krause emphasized the importance of combating quick and anonymous money laundering opportunities. This case underscores the ongoing battle against financial crime in the evolving landscape of digital assets.