German authorities have seized 34 million euros ($38.2 million) worth of cryptocurrency from defunct cryptocurrency exchange eXch as part of an investigation into allegations of commercial money laundering and operating a criminal trading platform.
German Authorities Seize $38 Million in Cryptocurrency from Anonymous Exchange in Money Laundering Investigation
The Frankfurt Public Prosecutor's Office confirmed on Friday that a coordinated operation conducted on April 30 resulted in the seizure of Bitcoin, Ether, Litecoin, Dash and other digital assets. Authorities also seized more than 8 terabytes of data and dismantled the platform's server infrastructure in Germany.
Founded in 2014, eXch offered an anonymous crypto exchange service and promoted itself as a platform exempt from Know Your Customer (KYC) requirements or anti-money laundering (AML) protocols. Authorities said eXch actively advertised that it did not adhere to compliance standards on platforms within the “criminal underground economy.”
$1.9 Billion Worth of Crypto Mined, Linked to Bybit Hack
Investigators estimate that over $1.9 billion in crypto assets have passed through eXch during its lifetime, a significant portion of which is believed to have been the result of criminal activity. Prosecutors said some of the $1.4 billion stolen from crypto exchange Bybit by North Korea’s Lazarus Group was funneled through eXch.
“Therefore, the operators of eXch are suspected of commercial money laundering and operating a criminal trading platform on the Internet,” German authorities said in a translated press release.
Although eXch announced in mid-April that it would be shut down on May 1 for a “transatlantic operation” targeting its operators for money laundering and terrorism-related crimes, German prosecutors said they had anticipated the closure and moved quickly to secure evidence.
In its farewell statement, eXch defended its platform, claiming that its privacy-focused mission had been misinterpreted.
“Privacy is not a crime. Instant exchanges that use third-party APIs to scan customer deposits and impose meaningless AML/KYC requirements are far from preventing money laundering and terrorism,” eXch said in a statement in April.
Authorities have yet to say whether any arrests have been made, but the investigation is ongoing. The seizure adds to a growing crackdown across Europe on platforms that facilitate anonymous crypto transactions that do not comply with regulations.
*This is not investment advice.
