{"id":479145,"date":"2025-05-09T12:09:29","date_gmt":"2025-05-09T11:09:29","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=479145"},"modified":"2025-05-09T13:11:53","modified_gmt":"2025-05-09T12:11:53","slug":"german-authorities-shut-down-exch-amid-1-9-billion-money-laundering-allegations-seizes-38-million-in-crypto","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/german-authorities-shut-down-exch-amid-1-9-billion-money-laundering-allegations-seizes-38-million-in-crypto\/","title":{"rendered":"German authorities shut down eXch amid $1.9B money laundering allegations, seizes $38M in crypto"},"content":{"rendered":"<p>German law enforcement has shut down the crypto exchange eXch and seized digital assets valued at over $38 million, according to a May 9 <a href=\"https:\/\/www.presseportal.de\/blaulicht\/pm\/7\/6029813\">statement<\/a>.<\/p>\n<p>In a joint operation, the Frankfurt Main Public Prosecutor's Office and the Federal Criminal Police Office (BKA) confirmed that the seizure occurred on April 30, 2025. The move followed a detailed investigation into the platform\u2019s failure to comply with anti-money laundering (AML) obligations.<\/p>\n<p>The officials said eXch operated without collecting user data or verifying identities, allowing anonymous and untraceable transactions.<\/p>\n<p>According to the statement, <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a>, <a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\">Ethereum<\/a>, <a href=\"https:\/\/cryptoslate.com\/coins\/litecoin\/\">Litecoin<\/a>, and Dash were among the digital assets confiscated from the platform. The authorities also took control of the exchange's local server infrastructure and terminated its services.<\/p>\n<p>The German officials estimated that eXch facilitated the movement of nearly $1.9 billion since its launch, with strong indications that a portion of these funds came from criminal sources. That includes suspected ties to the <a href=\"https:\/\/cryptoslate.com\/insights\/bybit-market-share-halves-after-record-1-5-billion-theft\/\">infamous $1.5 billion<\/a> <a href=\"https:\/\/cryptoslate.com\/companies\/bybit\/\">Bybit<\/a> theft.<\/p>\n<p>The prosecutors are now accusing the platform\u2019s operators of running an illegal online trading service and engaging in commercial money laundering.<\/p>\n<p>Dr. Benjamin Krause, Chief Public Prosecutor at the Central Office for Combating Cybercrime (ZIT), noted that crypto-swapping services like eXch are routinely exploited to hide profits from cyberattacks and stolen payment data.<\/p>\n<p>Considering this, he said:<\/p>\n<blockquote><p>&#8220;It is therefore all the more important that law enforcement agencies consistently take action against such quick and anonymous opportunities for money laundering of any amount and deprive perpetrators of the proceeds of the crime.&#8221;<\/p><\/blockquote>\n<h2>Is eXch down?<\/h2>\n<p>Although eXch announced its closure on May 1, claiming it was under international pressure, German investigators said they used the timing to secure evidence and advance their probe.<\/p>\n<p>However, blockchain analytics firm <a href=\"https:\/\/cryptoslate.com\/companies\/trm-labs\/\">TRM Labs<\/a> recently <a href=\"https:\/\/www.trmlabs.com\/resources\/blog\/exch-remains-active-despite-shutdown-how-the-bybit-hack-linked-exchange-continues-to-enable-laundering-of-csam-funds\">reported<\/a> that eXch continued operating in parts despite the claimed shutdown.<\/p>\n<p>The firm said API access remained active for partners, and on-chain activity revealed suspicious movements. Notably, over $300,000 in funds linked to child sexual abuse material (CSAM) reportedly passed through the platform\u2019s infrastructure.<\/p>\n<p>It added:<\/p>\n<blockquote><p>&#8220;It\u2019s unclear whether eXch will completely shut down its remaining API operations or resume operations as a new service. However,\u00a0the remaining API access continues to provide anonymization infrastructure for threat actors.&#8221;<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>German law enforcement has shut down the crypto exchange eXch and seized digital assets valued at over $38 million, according to a May 9 statement. In a joint operation, the Frankfurt Main Public Prosecutor&#8217;s Office and the Federal Criminal Police Office (BKA) confirmed that the seizure occurred on April 30, 2025. The move followed a [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":479191,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39,60793],"tags":[80227,77447],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>German authorities shut down eXch amid $1.9B money laundering allegations, seizes $38M in crypto<\/title>\n<meta name=\"description\" content=\"German prosecutors allege that eXch enabled the laundering of proceeds from cybercrime, including ties to the notorious Bybit heist.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/german-authorities-shut-down-exch-amid-1-9-billion-money-laundering-allegations-seizes-38-million-in-crypto\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"German authorities shut down eXch amid $1.9B money laundering allegations, seizes $38M in crypto\" \/>\n<meta property=\"og:description\" content=\"German prosecutors allege that eXch enabled the laundering of proceeds from cybercrime, including ties to the notorious Bybit heist.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/german-authorities-shut-down-exch-amid-1-9-billion-money-laundering-allegations-seizes-38-million-in-crypto\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-09T11:09:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-05-09T12:11:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/05\/german-police-crypto.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/german-authorities-shut-down-exch-amid-1-9-billion-money-laundering-allegations-seizes-38-million-in-crypto\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/german-authorities-shut-down-exch-amid-1-9-billion-money-laundering-allegations-seizes-38-million-in-crypto\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/profile-oluwapelumi-adejumo-1-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/profile-oluwapelumi-adejumo-1-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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