Cryptocurrency exchange eXch will cease operations on May 1 following allegations that it facilitated laundering activities connected to the infamous Bybit hack, according to an official announcement posted on April 17.
The decision to shut down came after eXch’s management team overwhelmingly voted to “cease and retreat,” citing mounting pressure and an “active transatlantic operation” targeting the platform. The firm is accused of processing roughly $35 million linked to North Korea’s Lazarus Group, part of a broader $1.4 billion exploit on crypto exchange Bybit earlier this year.
While initially denying involvement, eXch later admitted to handling what it called an “insignificant portion of funds” from the February breach. The platform has strongly emphasized its commitment to user privacy, criticizing industry peers for what it sees as overly aggressive anti-money laundering policies.
“Even though we’ve withstood multiple shutdown attempts confirmed to be part of this broader operation, we find it pointless to operate in a hostile environment,” said eXch in the statement. The platform also claimed it was under SIGINT (Signals Intelligence) surveillance due to misinterpretations of its intent and privacy protocols.
The controversy is tied to one of the most significant heists in cryptocurrency history. The Bybit hack led to over $5 billion in user withdrawals, with $1.4 billion attributed directly to the theft. In the wake of the breach, Bybit CEO Ben Zhou reassured users the exchange could cover losses if needed. However, the platform has since scaled back its Web3 services and shuttered its NFT marketplace.
Bybit, determined to recover its standing, paid over $2 million in bounties for information to trace and freeze stolen assets. As of late March, approximately 89% of the stolen funds had been traced, and the platform had regained around 7% of its pre-hack market share by April 10.
eXch’s closure highlights the growing scrutiny on crypto platforms in the wake of major cybercrimes and the tightening global focus on money laundering in the digital asset space.
