eXch restructures and moves operations to avoid regulatory scrutiny amid concerns over illegal activities - IcoHolder.

The controversial centralized crypto mixing service eXch has announced plans to relocate its operations and restructure to avoid increasing regulatory scrutiny. The move follows growing concerns over the service’s role in facilitating the laundering of tens of millions of dollars stolen from the Bybit crypto exchange by North Korea-affiliated hackers.

In an update posted on Bitcoin Talk, eXch revealed that it would be shifting its operations out of Belize and establishing a new corporate structure, which includes new shareholders and a revamped management board. The protocol stated that these changes were intended to "reduce risks for our founding team" while allowing it to continue operating in line with its undisclosed values.

The service acknowledged ongoing investigations by U.S. law enforcement agencies, which are reportedly targeting the protocol for its refusal to sever ties with the North Korean hackers involved in the Bybit breach. Bybit’s records indicate that eXch helped launder more than $94 million in stolen funds from the exchange, despite repeated requests to block the illicit transactions. In response to the mounting pressure, eXch disclosed that it would be updating its Terms of Service (ToS) to warn U.S.-based users about the risks of using the service, including potential prosecution under U.S. law.

In its bid to stay off the radar, eXch also announced plans to delist the two largest stablecoins by market capitalization—Tether (USDT) and USD Coin (USDC)—by mid-summer. The service intends to shift to Dai, an algorithmic stablecoin issued by MakerDAO, to reduce the risk of being blacklisted. Additionally, eXch will begin using dynamic addresses and alter its Bitcoin aggregation address in an effort to make it more difficult for authorities to trace transactions linked to its platform.

The decision to restructure follows intense backlash from blockchain analysts and law enforcement agencies, with many criticizing the protocol for its role in laundering funds for North Korean operatives. Despite the ongoing scrutiny, eXch maintains its stance on continuing operations as usual, even as it faces the potential risk of being added to the U.S. Office of Foreign Assets Control (OFAC) sanctions list.

As eXch moves forward with these controversial changes, the larger crypto community remains watchful, with many questioning how the service will navigate increasing pressure from regulators and law enforcement agencies aiming to clamp down on illicit activity in the crypto space.