German Authorities Dismantle Long-Running Crypto Swapping Site Tied to $1.9 Billion in Illicit Transfers
In a major crackdown on crypto-related crime, German law enforcement has seized digital assets worth €34 million (approximately $38.2 million) from the now-shuttered crypto exchange platform eXch, the Frankfurt Prosecutor General’s Office announced on Friday.
Launched in 2014, eXch functioned as an anonymous cryptocurrency swapping service, operating outside the bounds of regulatory oversight. The platform notably did not enforce any Know Your Customer (KYC) or Anti-Money Laundering (AML) measures—an absence that authorities say was openly advertised to criminal networks operating on the dark web.
German prosecutors revealed that a raid conducted on April 30 led to the confiscation of a broad range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Dash. Investigators also seized over 8 terabytes of digital data and physical server infrastructure located in Germany.
According to authorities, eXch played a key role in facilitating illicit financial flows. Since its inception, nearly $1.9 billion in crypto assets are believed to have moved through the platform—much of it allegedly tied to criminal activity. Notably, prosecutors say part of the $1.4 billion stolen from crypto exchange Bybit, linked to North Korea’s Lazarus Group, was laundered through eXch.
"Those operating eXch are under investigation for commercial-scale money laundering and running an illegal trading platform online," the prosecution stated.
Although eXch preemptively announced its shutdown in mid-April, planning to cease operations by May 1, German authorities had already initiated their enforcement action before the official closure. This strategic timing allowed them to secure vital evidence despite the platform’s sudden exit.
In a defiant farewell post, eXch’s operators claimed that the takedown was part of a “transatlantic operation” targeting them for alleged involvement in money laundering and terrorism financing. They argued that their commitment to privacy was being miscast as criminal intent, asserting that traditional AML and KYC standards have done little to deter illicit use of crypto.
“Privacy is not a crime,” eXch stated. “Instant exchangers using third-party screening APIs and blindly enforcing AML/KYC rules are ineffective deterrents. We chose a different path, and now we’re being punished for it.”
The case marks one of the most significant actions yet by European authorities to disrupt anonymous crypto infrastructure suspected of aiding cybercrime and financial laundering operations.