eXch Exchange Shut Down After Being Accused of Facilitating Cybercrime

eXch Exchange to Shut Down on May 1, 2025

Privacy-focused eXch Exchange will shut down on May 1st, 2025. The team announced this after serious allegations. They are accused of helping move stolen money. The money came from a big hack on Bybit earlier this year. eXch Exchange said the pressure was too much. They chose to close the platform.

In a statement, the eXch Exchange said it was forced to choose a “cease and retreat” strategy. The management team voted to shut down due to pressure from international authorities. The team said they were targets of a major transatlantic operation.

Source: Bitcoin Forum

They have claimed that signals intelligence agencies had been trying to shut it down. They said the hostile environment made it impossible to continue operations. The platform hinted it's shutdown was being pushed by powerful groups misinterpreting its goals.

Allegations on eXch

It is under heavy scrutiny following allegations that it played a role in laundering stolen funds from a major hack on Bybit. Investigators believe that North Korea’s Lazarus Group , a well-known cybercrime group, used the platform to move $35 million in digital assets. The stolen funds were part of the $1.4 billion taken in the February 2025 Bybit hack. This was one of the biggest hacks in crypto history.

At first, eXch Exchange denied the claims and said the reports were false. Later, it admitted that some stolen funds passed through its platform. But this was by accident, not on purpose. The team said eXch was made as a privacy project, not to help with crime. Despite its defense, pressure from law enforcement agencies led to a vote by the management team to shut down the platform. They claim it has been the target of a “transatlantic operation” and suggest that global intelligence groups are misinterpreting its mission to protect user rights.

Criticism of Centralized Exchanges and KYC

eXch Exchange supported privacy and avoided strict KYC rules. They said that big exchanges often misuse user trust with harsh policies that force people to give up their data. The team claimed eXch was created as a experiment and was never meant to support illegal activities or bad actors.

In its shutdown notice, the platform strongly criticized traditional exchanges. It argued that their anti-money laundering rules do not truly stop crime, but mostly affect regular users. They stated that many of these rules are ineffective and create a false sense of security while invading user privacy and freedom.

To support its mission after shutting down, they had announced a 50 Bitcoin donation. This money will help open-source privacy projects on the Bitcoin and Ethereum networks. The team wants to support developers who build tools for secure and private transactions. Their goal is to keep privacy alive in the crypto world.

In conclusion

eXch shutdown marks the end of a controversial privacy-focused platform. While it denies wrongdoing, investigations and pressure have made it impossible to continue. The exchange’s final message is clear: privacy is not a crime, and its mission will live on through support for privacy projects.