The Frankfurt Prosecutor’s Office has verified that law enforcement officials have taken control of the cryptocurrency network eXch, according to blockchain investigator ZachXBT.
The whole infrastructure of the platform and assets worth €34 million were seized as a result of the operation. This move comes after a more thorough investigation into eXch’s suspected involvement in helping to launder the proceeds of some well-known cybercrimes in the cryptocurrency industry.
eXch Linked to Major Crypto Hacks, Say Investigators
Investigators believe that eXch was used to handle illegal cash connected to a number of significant hacks and exploits.
These include the well-known $243 million theft from Genesis Creditors, the Bybit attack, cases involving multisignature (multisig) vulnerabilities, and the FixedFloat vulnerability.
With money purportedly being sent through websites like eXch to conceal its source, these allegations rank among the biggest crypto-related security lapses in recent memory.
German law enforcement has taken a major step in their crackdown on illegal cryptocurrency activity and the platforms that enable it with the seizure of eXch.
It also emphasizes how blockchain experts and law enforcement are increasingly working together to detect and stop the movement of digital assets that have been stolen or laundered. The inquiry is still underway, and more legal action may be taken soon.
Also Read: G7 Leaders To Meet And Discuss North Korea’s Crypto Hacks And Cyber Threats
eXch Enabled Anonymous Crypto Swaps Since 2014, Say Authorities
eXch was a cryptocurrency exchanging business that was introduced in 2014 and was renowned for providing total anonymity.
It enabled users to swap Bitcoins without identity verification (KYC) or transaction monitoring, and it operated on both the clearnet and the darknet.
Criminal organizations found it appealing and marketed it as a means of making anonymous transfers. Authorities now claim that eXch helped launder money from significant cryptocurrency occurrences, such as the FixedFloat exploit and the Bybit attack.
In order to make tracing practically impossible, the platform’s design purposefully concealed user addresses and transaction history. To increase its reach even more, it also gave third-party liquidity providers API access.
eXch Shutdown Signals Global Crackdown on Anonymous Crypto
The closure of eXch highlights the growing international attempts to control anonymous digital finance and stop criminal activity related to cryptocurrencies.
Platforms that facilitate untraceable transactions are coming under increased scrutiny from authorities, especially those that lack transaction monitoring and KYC procedures.
Law enforcement hopes to disrupt money laundering networks that take advantage of crypto’s pseudonymity by taking down services like eXch.
Regulators are targeting platforms that facilitate illegal behavior, and this move signifies a trend toward stronger compliance standards across the business.
In order to track down and retrieve stolen digital assets, governments and blockchain experts are increasingly working together, which emphasizes the necessity of accountability in decentralized financial systems.
Also Read: Kraken Detects North Korean Hacker’s Deceptive Job Application in Failed Crypto Hack Attempt