Privateness-focused trade eXch will shut down operations on Might 1 following rising allegations that it was used to launder funds stolen within the $1.5 billion Bybit hack.
In an Apr. 17 discover on the Bitcoin Discussion board, eXch’s staff stated the mission had turn out to be the goal of a “transatlantic operation” aiming to close it down and probably prosecute key figures for cash laundering and terrorism.
The Czech-based trade, identified for minimal know-your-customer necessities, pressured that it was created as a privateness experiment with no monetary targets. It denied any intent to facilitate illicit exercise. Whereas eXch has typically been labeled a “mixer,” the staff clarified that it’s a privacy-focused immediate trade, not a conventional coin mixer.
The staff claims it obtained intelligence from contacts within the “state intelligence sector” that confirmed its inclusion in ongoing investigations associated to the laundering of crypto property.
The trade had beforehand denied accusations of laundering funds from the Bybit hack, initially dismissing studies that it had aided North Korea’s Lazarus Group. Nevertheless, it later acknowledged processing a “small portion” of the hacked funds.
Blockchain analytics companies like Elliptic and TRM Labs flagged eXch as a key hub within the laundering course of. Following the Feb. 21 exploit that drained ~401,000 Ethereum (ETH) from Bybit’s chilly pockets, the Lazarus Group used an online of decentralized exchanges, cross-chain bridges, and privateness instruments, together with eXch, to cover the stolen property’ origin.
In its shutdown discover, eXch criticized centralized exchanges for what it referred to as “nonsensical insurance policies” that fail to meaningfully cease cash laundering. It reaffirmed its mission of defending person privateness and introduced a 50 Bitcoin (BTC) fund to help open-source privacy-enhancing tasks within the Bitcoin and Ethereum ecosystems.
Regardless of its closure, eXch warned that shutting down its platform wouldn’t eradicate illicit exercise in crypto. “The objective of stopping eXch beneath the assumption that it might cease all cash laundering on this planet is ridiculous,” the assertion reads.
eXch’s API will stay obtainable to companions for a restricted time, whereas an incoming administration staff determines the platform’s remaining transition. “Privateness isn’t a criminal offense,” the announcement concludes.
