Cryptocurrency platform eXch has announced it will cease operations on May 1, 2025. The decision comes after allegations that the exchange may have been used to launder funds stolen in the Bybit hack.
$35 Million, Lazarus, and Intelligence Surveillance
According to investigations, part of the $1.4 billion stolen in February may have been funneled through eXch. The amount in question is approximately $35 million, allegedly laundered by the North Korean hacker group Lazarus. The platform’s leadership claims the company became the target of a transnational shutdown operation, including attempts to disable infrastructure and surveillance efforts by SIGINT (signals intelligence).
The eXch team stated that the decision to shut down was supported by the majority of governance participants. Despite earlier efforts to keep the platform running, the management admitted it was not prepared to continue operating under constant pressure.
Initially, eXch denied any connection to the laundering of funds by Lazarus Group. However, it later acknowledged that it processed “a small portion” of the assets that arrived after the attack. The platform emphasized its commitment to user privacy and accused other exchanges of abusing KYC practices, noting that it is known for operating without such procedures.
What Happened to Bybit
The Bybit incident remains one of the largest hacks in crypto history. The attack affected user assets, with total withdrawals from the platform exceeding $5 billion. CEO Ben Zhou stated in February that Bybit would be able to cover the losses using its own funds. However, the company later announced the closure of several Web3 services and its NFT marketplace.
Partial Recovery and Payouts
As of April 10, Bybit had recovered its market share to 7% — the same level recorded before the hack. According to data from March 20, the exchange managed to trace and partially freeze around 89% of the stolen $1.4 billion. As part of a bounty program, Bybit paid over $2 million to bug hunters and insiders who provided information that helped track the assets.
OKX Also Under Scrutiny
Earlier in March, another major exchange, OKX, also faced allegations of involvement in laundering funds stolen from Bybit. The platform temporarily suspended its decentralized exchange (DEX) aggregator service after reports it may have been used to launder assets obtained in the hack. In an official statement, OKX said the decision was made after consulting with regulators and was aimed at strengthening security measures.
Earlier: North Korea Expands Blockchain Espionage in EU and UK
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