German authorities have seized $38 million in cryptocurrency from eXch, a platform accused of laundering over $1.9 billion.
The Frankfurt Public Prosecutor’s Office and the Federal Criminal Police Office (BKA) carried out the operation on April 30, just a day before the platform’s operators planned to shut it down.
The authorities confiscated 8 terabytes of data linked to illegal activities. eXch operated from 2014, allowing users to exchange cryptocurrencies like Bitcoin, Ethereum, and Litecoin without registration or anti-money laundering checks.
Investigations show that eXch was used to launder hundreds of millions of dollars stolen in cyberattacks.
This includes $1.5 billion from the Bybit hack and $243 million from Genesis creditors. The platform promoted its lack of controls on underground forums.
Crypto Mixer Used for Money Laundering
eXch’s service didn’t require user identification or data storage. This made it a tool for hiding the source and destination of funds.
Such platforms, known as crypto mixers, are used to obscure financial flows.
The case is part of a larger crackdown on crypto platforms involved in illegal activities in Europe.
Other platforms shut down include ChipMixer, Sinbad, and Hydra.
Impact on Crypto Regulations
The eXch case represents a significant step in combating financial crime.
It sets a precedent for other services that hide criminal activities under the guise of anonymity and decentralization.
As European regulators strengthen their strategies, the eXch case serves as a warning to those using blockchain technology to evade the law.
The operation highlights the need for stricter regulations and better oversight in the crypto space.