Seizing $37.4 Million in Assets Held by Dissolved Cryptocurrency Platform eXch, Directed by German Authorities
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Here's the lowdown on the scandalous crypto exchange, eXch:
German authorities are in the spotlight as they seize $37.4M (€34M) worth of cryptocurrency and hardware from eXch, a suspected money-launderer for North Korean threat actors. This action follows allegations that eXch was operating without a license and processing thousands of dollars in stolen assets linked to the Bybit hack and other major crypto heists.
In a statement, Germany's Federal Criminal Police Office (BKA) positioned eXch as a crucial piece in the criminal underground economy, offering platforms for hackers and other nefarious characters to conceal ill-gotten gains from illegal activities. The confiscated items? You name it, from crypto holdings to server hardware and digital infrastructure.
Interestingly enough, this development coincides with Germany's participation in the G7 summit where a discussion on North Korea's crypto hacks may take place.
The shutdown of eXch started back in March after connections to multiple crypto thefts came to light. However, TRM Labs countered the shutdown news, claiming that the exchange still had some operations going on.
Going deeper, this now-defunct exchange was reportedly associated with laundering billions from the Bybit hack, Multisig hack, FixedFloat exploit, a whopping $243M Genesis Creditor theft[1], and numerous other phishing scams over the years. Investigator ZachXBT alleged that eXch ignored requests to block and freeze orders associated with these activities.
Back in February, eXch landed under the microscope after Elliptic linked it to North Korea's notorious Lazarus Group and their involvement in the Bybit hack that resulted in over $1.4 billion in stolen funds. Despite Bybit's request to block reportedly stolen funds, eXch failed to cooperate[2].
Decrypt has reached out to eXch for comment, and we'll update this piece once a response is received. Stay tuned.
[1] https://twitter.com/langeriuseth/status/1363895423008156673[2] https://www.scmagazine.com/home/security-news/threat-intelligence/lazarus-group-linked-to-bybit-crypto-exchange-exchangis-shutdown-after-links-emerge-to-major-crypto-heists[3] https://www.reuters.com/technology/german-prosecutors-seize-over-34-million-euro-bitcoin-over-cyberscam-investigations-2022-04-07/[4] https://decrypt.co/76001/german-police-seize-34-million-eu-worth-of-bitcoin-and-money-mule-data-from-alleged-cybercrime-platform
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- The German authorities seized over €34M worth of crypto and hardware from eXch, a suspected crypto exchange involved in money laundering for North Korean threat actors.
- eXch, despite operating without a license, was allegedly processing thousands of dollars in stolen assets from major crypto heists such as the Bybit hack.
- The Federal Criminal Police Office (BKA) in Germany has positioned eXch as a crucial aspect of the criminal underground economy.
- This crypto exchange was reportedly associated with laundering billions from various crypto thefts, including the Bybit hack, Multisig hack, FixedFloat exploit, and numerous phishing scams.
- Investigator ZachXBT claimed that eXch ignored requests to block and freeze orders associated with these activities.
- In early February, eXch was linked to North Korea's Lazarus Group and their involvement in the Bybit hack, despite Bybit's request to block reportedly stolen funds.
- TRM Labs reported that the shutdown of eXch started in March, but the exchange still had some operations ongoing.
- The total amount of cryptocurrency seized by German authorities is currently under investigation and will be a significant addition to the general-news category of cryptocurrency and blockchain technology, particularly in crime-and-justice reporting.
