eXch Exchange to Cease operations Amid Money Laundering Allegations
eXch, a privacy-focused exchange, will close its doors on May 1. The decision comes after it was accused of helping launder funds from the massive $1.5 billion Bybit hack.
In a recent announcement on the Bitcoin Forum, eXch’s team revealed it’s under intense scrutiny. They claim to be part of a “transatlantic operation” targeting them. The team insists they where never involved in illegal activities. They argue the platform was a privacy experiment, not a tool for criminals.
Despite its claims, blockchain analytics firms like Elliptic and TRM Labs flagged the platform as a key player in the Bybit hack. The czech-based platform faced mounting pressure over its role in the Bybit hack. The team denies any wrongdoing, stating their platform was a privacy experiment, not a money laundering tool. They’ve been accused of aiding the Lazarus Group, a North Korean hacking group, in hiding stolen funds.The exchange is known for its relaxed user verification rules. This made it a target for illicit activities.
Some call eXch a “mixer.” However, the team insists it’s an instant exchange, not a mixer. They say they’ve been unfairly targeted.They received warnings from intelligence sources about ongoing investigations.This forced their hand to shut down.
eXch’s closure highlights the ongoing battle between privacy and regulation in the crypto world. The team believes their shutdown won’t stop illicit activities. They’ve set aside 50 BTC to fund privacy projects in Bitcoin and Ethereum.
While eXch’s API will stay available temporarily, the future remains uncertain. The team’s final message: “Privacy is not a crime.”
