German law enforcement has taken action against the crypto exchange eXch, seizing digital assets worth over $38 million in a recent operation. The Frankfurt Main Public Prosecutor’s Office and the Federal Criminal Police Office (BKA) jointly conducted the seizure on April 30, 2025, after an investigation revealed that the platform was not adhering to anti-money laundering (AML) regulations.
eXch was found to be operating without collecting user data or verifying identities, allowing for anonymous and untraceable transactions. As a result, Bitcoin, Ethereum, Litecoin, and Dash were among the digital assets confiscated by authorities, along with the exchange’s local server infrastructure being taken control of and its services terminated.
It was estimated that eXch facilitated the movement of nearly $1.9 billion since its inception, with suspicions that a portion of these funds originated from criminal sources, including potential ties to the infamous $1.5 billion Bybit theft. The platform’s operators have been accused of operating an illegal online trading service and engaging in commercial money laundering.
Dr. Benjamin Krause, Chief Public Prosecutor at the Central Office for Combating Cybercrime (ZIT), highlighted the role of crypto-swapping services like eXch in concealing profits from cyberattacks and stolen payment data. He emphasized the importance of law enforcement agencies taking action to prevent money laundering through such platforms.
Despite eXch’s announcement of closure on May 1 citing international pressure, reports from blockchain analytics firm TRM Labs suggest that parts of the platform continued to operate. API access remained active for partners, and on-chain activity indicated suspicious transactions, including the transfer of funds linked to child sexual abuse material (CSAM).
TRM Labs expressed uncertainty about whether eXch would fully cease its remaining operations or potentially reemerge as a new service. The continued API access was flagged as providing infrastructure for threat actors seeking anonymization.
In conclusion, the crackdown on eXch by German authorities underscores the ongoing challenges in regulating the cryptocurrency space and the importance of enforcing AML measures to prevent illicit activities. The case serves as a reminder of the risks associated with unregulated crypto exchanges and the need for vigilance in combating financial crimes in the digital asset sector.