In a major crackdown on digital currency crime, German authorities have taken down eXch, a crypto swapping service accused of laundering nearly $1.9 billion in illicit funds. The platform, which operated since 2014, was seized by Germany’s Federal Criminal Police Office (BKA) and the Frankfurt Public Prosecutor’s Office on April 30.
eXch gained notoriety for operating on both the open internet and the dark web, offering crypto-swapping services with no Know Your Customer (KYC) checks. The platform openly marketed its anonymity, attracting users looking to conceal the origins of fraudulent crypto transactions. According to the BKA, eXch did not require identity verification or store user data, making it an ideal tool for laundering digital assets.
The takedown followed a broader international effort, with Dutch law enforcement agency FIOD also playing a key role in the investigation. Authorities suspect that the platform played a role in washing a portion of the $1.5 billion in Ethereum stolen in February’s high-profile Bybit hack—an attack attributed to the North Korea-linked Lazarus Group.
Investigators allege that eXch’s operators were knowingly facilitating criminal activity and violating financial laws. In a translated statement, the BKA accused them of operating a criminal trading platform and participating in large-scale commercial money laundering.
Despite eXch’s claim that it was preparing to shut down voluntarily on May 1, law enforcement acted early. The exchange had posted in a forum that unnamed sources from “state intelligence” had warned them about a looming investigation. Operators insisted that their intent was never to support illegal activity such as terrorism or laundering but acknowledged the growing legal pressure.
Officials moved swiftly to preserve key evidence, including the platform’s database and approximately €34 million (about $38 million) in various cryptocurrencies—Bitcoin, Ether, Litecoin, and Dash.
The FIOD confirmed it is continuing investigations into users who exploited the service to mask illegal financial operations. Authorities believe the takedown of eXch will help disrupt broader crypto-fueled money laundering networks operating across Europe and beyond.
