German authorities shut down eXch crypto exchange, seizing €34 million and highlighting global efforts to combat crypto cybercrime - IcoHolder.

In a significant blow to the world of illicit cryptocurrency exchanges, German authorities have shut down the notorious eXch crypto swapping service. The takedown, orchestrated by the Frankfurt Public Prosecutor’s Office (ZIT) and the Federal Criminal Police Office (BKA), resulted in the seizure of €34 million in digital assets and eight terabytes of data. This marks Germany’s third-largest crypto seizure to date, highlighting the country’s commitment to cracking down on cybercrime within the crypto space.

eXch, which had been operational since 2014, was allegedly a major hub for global cybercriminal activity. On-chain investigator ZachXBT uncovered its connections to several high-profile crypto hacks, including the Bybit multi-signature exploit and the $243 million Genesis Creditor heist. The platform’s refusal to freeze stolen funds or cooperate with law enforcement made it a prime destination for cybercriminals looking to launder their gains.

Operating without oversight, Know Your Customer (KYC) protocols, or any form of identity verification, eXch provided a safe haven for illicit transactions. The exchange was widely advertised on the darknet and allowed users to covertly convert stolen or scammed cryptocurrencies into legitimate assets. Before its shutdown, investigators estimated that a staggering $1.9 billion had passed through the platform, underscoring its role in global crypto crime.

While eXch had announced a voluntary shutdown on May 1, law enforcement acted quickly, coordinating with Dutch authorities to secure vital evidence. The swift operation reflects a broader shift in international crypto enforcement, with German authorities underscoring that cybercrime has become an organized and industrial operation.

This move signals the beginning of a new era in crypto regulation, where enforcement agencies are proactively targeting criminals before they can act. The takedown of eXch sets a powerful precedent for data-driven action against crypto laundering, sending a clear message that blockchain technology may offer anonymity, but it also leaves a trace—and so does justice.