Germany Confirms $38M Crypto Seizure Linked to Bybit Hack
π©πͺ German authorities have seized β¬34 million ($38 million) in digital assets from crypto platform eXch, a key player linked to laundering funds from the $1.4 billion Bybit hack.
π Germanyβs Federal Criminal Police Office (BKA) has confirmed a major crypto seizure totaling $38 million, confiscated from eXch, a platform allegedly involved in laundering stolen funds from the notorious Bybit hack. This crypto seizure marks the third-largest of its kind in BKA history and demonstrates a growing crackdown on illicit activity in the blockchain sector.
π» The confiscation included a mix of cryptocurrencies such as Bitcoin, Ether, Litecoin, and Dash, all tied to transactions made on the eXch platform. The crypto seizure was made public on May 9, following a joint investigation between the BKA and the Frankfurt public prosecutorβs office. As part of the action, German authorities also took control of eXchβs server infrastructure and more than eight terabytes of data.
π eXch operated as a crypto swapping service without implementing Anti-Money Laundering (AML) protocols, according to the BKA. This lack of AML oversight made the platform a hotspot for suspicious transactions, including activities connected to the Bybit hack. Investigators believe that eXch facilitated the conversion of crypto assets used in multiple major thefts, with the latest crypto seizure providing evidence of that role.
π The platform reportedly handled over $1.9 billion in crypto transfers since 2014, and a substantial portion of these were flagged as potentially illicit. Law enforcement authorities claim that the eXch service played a direct role in laundering a portion of the $1.5 billion stolen from Bybit during a hack that took place on February 21, 2025. This incident was one of the most significant cyber thefts in the industry, prompting immediate global attention and now a substantial crypto seizure.
π΅οΈ Blockchain investigator ZachXBT was one of the first to raise concerns about eXch’s activities, especially in the aftermath of the Bybit hack. He shared that a wallet associated with the Lazarus Group had transferred 5,000 ETH from the Bybit breach to eXch. These funds were then routed through Chainflip and other bridges, linking the flow of funds to centralized mixers. His findings further validated the legitimacy of this latest crypto seizure.
π¨ Beyond the Bybit incident, eXch has allegedly been involved in laundering millions from other exploits, including the $243 million Genesis creditor theft, as well as cyber attacks on Multisig and FixedFloat. ZachXBT also cited that the service regularly failed to block phishing addresses or comply with freeze orders, reinforcing its reputation as a laundering hub and leading to the decisive crypto seizure.
π΄ Despite initially denying any ties to criminal activity, eXch announced in April that it would shut down by May 1, citing a βhostile environmentβ and ongoing surveillance efforts. In a public post, the platform claimed to have survived previous takedown attempts but acknowledged it could no longer operate effectively. This closure preceded the official crypto seizure by just a few days, indicating that pressure from authorities may have influenced the shutdown.
βοΈ Senior prosecutor Benjamin Krause emphasized the importance of prosecuting platforms that enable fast and anonymous crypto laundering, noting that such services serve as key facilitators of the underground digital economy. He added that crypto swapping plays a central role in hiding proceeds from hacking and fraud, underscoring the broader implications of this crypto seizure for the global fight against cybercrime.
π This event signals Germanyβs continued commitment to regulatory enforcement in the digital asset space, especially following previous high-profile cases. The crypto seizure from eXch is expected to act as both a warning and a precedent for platforms that ignore compliance standards. The BKAβs ongoing investigations suggest that additional seizures could be forthcoming.
π As the crypto ecosystem evolves, platforms must adapt to growing regulatory expectations or face legal consequences, as seen with the latest crypto seizure. The eXch case also reinforces the critical role of independent researchers like ZachXBT, whose on-chain analysis often leads to real-world actions by authorities.