eXch, a well-known cryptocurrency exchange, has announced it will be shutting down on May 1st, 2025, following serious allegations of its involvement in laundering funds from the infamous Bybit hack. The decision comes after a vote by the majority of the platform’s management team, which deemed the environment increasingly hostile amid ongoing investigations. This closure marks a significant turning point for the exchange, which had once been a trusted platform in the crypto industry.
The Bybit hack, which took place earlier this year, has been described as one of the most devastating and high-profile cyberattacks in cryptocurrency history. The hack resulted in a massive $1.4 billion loss, with more than $5 billion withdrawn from users’ accounts. The Lazarus Group, a North Korean hacking organization known for its high-profile cybercrimes, is believed to have stolen approximately $35 million from the hack. Reports indicate that these funds were allegedly funneled through the eXch exchange, raising serious questions about the platform’s role in the illicit activity.
Despite initially denying any involvement in the laundering of the stolen funds, eXch later acknowledged that it had processed what it described as a “negligible portion” of the funds stolen during the Bybit hack. The exchange insisted that it had not knowingly participated in money laundering activities for the Lazarus Group. However, it also claimed that eXch had been caught up in a “transatlantic operation” targeting its infrastructure, further complicating the narrative. This revelation has fueled a firestorm of criticism and scrutiny, with many questioning the platform’s security protocols and transparency.
The controversy surrounding eXch’s involvement in the hack has had far-reaching consequences for the exchange’s operations. In addition to the public backlash, the company’s management emphasized that it could no longer operate under such hostile conditions. They expressed frustration over what they perceived as a lack of support and cooperation from the broader crypto industry, citing difficulties in maintaining privacy and security under intense surveillance. The platform’s leadership also pointed to the increased targeting of their infrastructure by intelligence agencies, which contributed to their decision to cease operations.
Bybit, the exchange that suffered the hack, has managed to show some signs of recovery. Since the attack, Bybit has regained about 7% of its market share, bringing it back to the level it had before the hack. The platform has worked tirelessly to regain the trust of its users, including offering over $2 million in rewards to bounty hunters who provided useful information about the stolen funds. As of March 2025, approximately 89% of the stolen $1.4 billion has been traced to other platforms, with a portion of the funds being recovered.
The situation with eXch highlights the increasing scrutiny cryptocurrency exchanges are facing when it comes to their role in preventing illicit activities, such as money laundering and cybercrime. This incident has brought the issue to the forefront, with governments and regulatory bodies putting more pressure on crypto platforms to enhance their security measures and better protect users from malicious actors. In this case, eXch’s closure underscores the fallout from the Bybit exploit and the ongoing struggle within the crypto industry to manage risks related to cyber threats.
As the cryptocurrency market continues to grow and evolve, the closure of eXch serves as a reminder of the vulnerability of exchanges and the broader ecosystem to criminal activity. This event may spark further calls for stronger regulation, better security practices, and more transparency within the industry to ensure that users are adequately protected from future hacks and scams.
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