Michaela
Cryptocurrency exchange eXch has revealed plans to cease activities on May 1 amidst growing allegations that it facilitated the laundering of funds linked to the recent $1.4 billion hack of Bybit.
In an official statement released on April 17, the crypto exchange announced that its management team had voted overwhelmingly to “cease and retreat” in light of allegations connecting the platform to the laundering of approximately $35 million from the recent Bybit hack.
Reports suggest that North Korea’s Lazarus Group, allegedly involved in the exploit, used eXch for the transaction. The exchange also revealed it is under investigation as part of an “active transatlantic operation” aimed at shutting it down and potentially pursuing legal charges.
“We don’t see any point in operating in a hostile environment where we are the target of SIGINT [Signals Intelligence] simply because some people misinterpret our goals. Starting from the date of the merger with a new management team this month, and as a result of some urgent meetings, the majority of us voted to cease and retreat instead of going against strong winds, because none of us want to cause any harm to innocent people,” eXch wrote.
Initially, eXch denied claims from crypto investigators who alleged that it facilitated money laundering for the Lazarus Group. However, the exchange later acknowledged processing a small portion of funds linked to the February hack, although it downplayed the significance of its involvement.
“The goals we certainly never had in mind were to enable illicit activities such as money laundering or terrorism, as we are being accused of now. We also have absolutely no motivation to operate a project where we are viewed as criminals. This doesn’t make any sense to us,” the eXch further clarified.
The exchange emphasized that it has demonstrated the feasibility of running operations without imposing unfair policies on its customers. It criticized other projects that may view this announcement as a “weight lifted off their shoulders,” endorsing the flawed notion that confiscating crypto from users can somehow stop money laundering.
The exchange also condemned the reliance on inconsistent and unreliable scoring systems created by companies that profit by pushing for the segregation of blockchain data, positioning themselves as middlemen who extract funds from governments through consultancy.
“Our project will also demonstrate that even without it, this space will continue to have ways and instruments for those engaging in illicit activities to effectively “launder” their funds. Thus, the goal of stopping eXch under the belief that it may stop all money laundering in the world is ridiculous,” the exchange wrote.
Furthermore, eXch stated that its partners would retain access to the platform’s API for a limited period. However, following May 1st, control over the platform’s infrastructure will shift to the new management team, and the future of access remains uncertain. The exchange advised partners to consider establishing their own liquidity pools to ensure uninterrupted operations and offered to provide consulting services and guidance to assist in the transition.
The Bybit hack occurred in February 2025, during which investigators found that the stolen funds were routed through various exchanges, raising concerns about money laundering within the crypto space. This incident has prompted increased scrutiny of exchanges’ security protocols and their potential involvement in managing illicit transactions.
Read More
- Lazarus Group ‘Launders’ $1.5B Bybit Hack Funds Using THORChain DEX
- Bybit Hack: Majority of Stolen $1.4B Can Still Be Tracked
- North Korea’s Lazarus Group Expands Crypto Holdings After Bybit Hack
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
