Key Takeaways
- German and Dutch authorities dismantled eXch, a crypto-swapping service, seizing €34M in digital assets.
- The platform operated on the public web and darknet, often bypassing AML safeguards.
- German law enforcement is aggressively targeting crypto platforms tied to illicit activity.
German authorities are ramping up efforts to shut down the shadow economy thriving in digital wallets.
Their latest move targets a deeply entrenched player in the crypto-laundering ecosystem, just as it was preparing to disappear.
You’ll Want To See This
German Police Shut Down Crypto Platform eXch
In a major crackdown, German authorities have dismantled the crypto exchange platform eXch and confiscated digital assets valued at approximately €34 million.
According to a statement released by Frankfurt prosecutors on Friday, the seizure is the third-largest crypto-related asset confiscation ever conducted by Germany’s Federal Criminal Police. The operation also saw collaboration from Dutch law enforcement agencies.
The confiscated digital currencies include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Dash (DASH). The service operated under the domain eXch.cx and several other addresses, allowing users to trade various cryptocurrencies.
It was accessible on the public web and the darknet. The crypto exchange actively promoted its services in illicit marketplaces that lacked anti-money laundering (AML) safeguards.
eXch Takedown Tied to Bybit Hack and $1.9 Billion in Suspect Transactions
Investigators also believe that eXch may have helped launder some of the $1.5 billion stolen during the Feb. 21 hack of crypto exchange Bybit.
Since its inception in 2014, the platform has reportedly facilitated transactions totaling around $1.9 billion in cryptocurrencies.
Authorities executed their operation just one day before eXch was reportedly set to shut down on May 1.
The timing of the intervention suggests law enforcement was aiming to intercept any final illicit transactions before the platform ceased operations.
Germany Previously Closed 47 Crypto Exchanges
It’s not the first time that German authorities have scrutinized crypto firms. In September 2024, they shut down 47 unlicensed crypto platforms accused of enabling money laundering by bypassing AML rules.
The exchanges offered anonymous transactions, attracting cybercriminals and darknet users. Investigators seized servers and user data, but noted that prosecution may be difficult as many operators are abroad.
In a separate operation, 13 illegal Bitcoin ATMs and € 250,000 were seized across Germany. Regulators warned that these machines, often unlicensed, pose money laundering risks.
Previous enforcement also included the seizure and sale of Bitcoin from Movie2k.to, which impacted market prices.
Was this Article helpful?
