Privateness-focused change 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 group stated the mission had change into the goal of a “transatlantic operation” aiming to close it down and probably prosecute key figures for cash laundering and terrorism.
The Czech-based change, recognized for minimal know-your-customer necessities, burdened that it was created as a privateness experiment with no monetary targets. It denied any intent to facilitate illicit exercise. Whereas eXch has usually been labeled a “mixer,” the group clarified that it’s a privacy-focused prompt change, not a conventional coin mixer.
The group claims it obtained intelligence from contacts within the “state intelligence sector” that confirmed its inclusion in ongoing investigations associated to the laundering of crypto belongings.
The change had beforehand denied accusations of laundering funds from the Bybit hack, initially dismissing experiences that it had aided North Korea’s Lazarus Group. Nonetheless, it later acknowledged processing a “small portion” of the hacked funds.
Blockchain analytics corporations 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 belongings’ origin.
In its shutdown discover, eXch criticized centralized exchanges for what it known as “nonsensical policies” that fail to meaningfully cease cash laundering. It reaffirmed its mission of defending person privateness and introduced a 50 Bitcoin (BTC) fund to assist open-source privacy-enhancing initiatives within the Bitcoin and Ethereum ecosystems.
Regardless of its closure, eXch warned that shutting down its platform wouldn’t get rid of illicit exercise in crypto. “The goal of stopping eXch under the belief that it may stop all money laundering in the world is ridiculous,” the assertion reads.
eXch’s API will stay out there to companions for a restricted time, whereas an incoming administration group determines the platform’s ultimate transition. “Privacy is not a crime,” the announcement concludes.
