Frankfurt authorities shut down crypto exchange eXch, seizing $38.2 million in assets linked to money laundering activities - IcoHolder.
Frankfurt authorities have suspended operations for the crypto exchange platform eXch and seized its assets, valued at $38.2 million. This significant operation, announced on May 9, follows accusations that the platform facilitated money laundering activities related to some of the largest cryptocurrency heists in history.
The Frankfurt Prosecutor’s Office confirmed the seizure of assets, including Bitcoin, Ethereum, Litecoin, and Dash, as part of its crackdown on commercial money laundering. In total, authorities confiscated 34 million euros’ worth of cryptocurrency, marking what is described as the third-largest crypto asset seizure in the history of the Federal Criminal Police Office (BKA).
eXch, established in 2014, operated as a crypto exchange platform accessible both on the public internet and the dark web. Authorities believe the platform was used to launder hundreds of millions of dollars stolen in major hacks, including the $1.5 billion Bybit hack and the $1.4 billion Multisig hack, as well as funds from the FixedFloat exploit and various phishing scams.
According to crypto investigator ZachXBT, the platform repeatedly refused to block suspicious addresses and transactions related to these hacks, further implicating it in the laundering of criminally obtained funds.
The authorities have uncovered that eXch’s operations were particularly attractive to dark web users, offering a service that did not require identity verification or adherence to anti-money laundering regulations. This allowed criminals to cover their tracks and launder illicit funds with greater ease.
Carsten Meywirth, director of the Federal Criminal Police Office’s Cybercrime Division, confirmed the seizure of “record-breaking” amounts of incriminating cryptocurrencies and vowed that the authorities would continue their efforts to disrupt illegal operations in the underground economy.
The shutdown of eXch comes at a time when crypto-related crime continues to be a significant challenge for law enforcement, and authorities have pledged to hold those responsible for such illegal activities accountable.
