German Authorities Shut Down Crypto Exchange eXch Amid Money Laundering Allegations
By: Isha Das
In a significant crackdown on illegal financial activities, German law enforcement has shut down the crypto exchange eXch, seizing digital assets worth over $38 million. The operation, carried out by the Frankfurt Main Public Prosecutor's Office and the Federal Criminal Police Office (BKA), came after a thorough investigation into eXch's non-compliance with anti-money laundering (AML) obligations. The authorities took decisive action on April 30, 2025, after uncovering that the platform was facilitating anonymous transactions without proper user verification, thus allowing a haven for illicit activities.
The investigation revealed eXch's involvement in the transfer of nearly $1.9 billion, suspected to be linked to criminal sources, including the notorious $1.5 billion Bybit theft. Assets such as Bitcoin, Ethereum, Litecoin, and Dash were confiscated, and eXch's server infrastructure in Germany was dismantled. This operation represents the third-largest crypto confiscation in the history of Germany's federal criminal police, highlighting the significant resources and efforts employed to dismantle such nefarious activities.
Chief Public Prosecutor Dr. Benjamin Krause emphasized the importance of eradicating platforms that enable cybercriminals to launder money anonymously. Despite its operators claiming the closure of eXch due to international pressure, reports from blockchain analytics firm TRM Labs indicated that the exchange continued to operate, keeping API access active for partners and facilitating the movement of suspicious funds. Over $300,000 linked to child sexual abuse material reportedly passed through the platform, raising alarms about its ongoing illicit activities.
German authorities continue to investigate the full extent of eXch's operations and are determined to bring those responsible for these illegal activities to justice. The case underscores the pressing need for stringent regulatory measures and vigilant surveillance of cryptocurrency platforms to prevent exploitation by rogue operators.
