- eXch confirms shutdown amid accusations of Lazarus Group-linked laundering.
- Bybit hack triggered over $5B in user withdrawals in February.
- Over $2M in bounties helped Bybit freeze 89% of stolen funds.
Cryptocurrency platform eXch has confirmed it will close on May 1 following accusations of facilitating money laundering. The move comes amid growing scrutiny from authorities over claims that the exchange was involved in handling funds linked to the Lazarus Group. Reports allege the group laundered stolen assets from a $1.4 billion exploit targeting Bybit, a leading crypto exchange.
Company Cites Intelligence Targeting and Operational Pressure
eXch released an official statement on April 17 announcing the decision to adopt a “cease and retreat” approach. The firm cited pressure from ongoing operations involving intelligence agencies and cybersecurity units. The company reported that most of its leadership voted in favor of closing due to continued attempts to disrupt its systems.
The platform claimed it was subjected to active transatlantic surveillance as part of efforts to shut it down. eXch stated that multiple infrastructure attacks had occurred, all linked to the same coordinated operation. It argued that it could no longer operate safely while being the focus of what it described as hostile intelligence activities.
eXch Admits Small Role in Bybit Exploit Funds
Although eXch initially denied involvement, it later admitted to processing a small portion of the funds from the February hack. The platform acknowledged that some transactions connected to the $1.4 billion Bybit breach passed through its systems. Reports indicate that Lazarus Group moved approximately $35 million of those assets through eXch.
Despite the admission, the company claimed its role in the incident was minimal. In the same statement, the team maintained its position on user privacy and data protection. It criticized existing compliance procedures on other platforms, saying those models fail to respect customer autonomy.
Bybit Still Recovering From February’s Massive Exploit
The February hack on Bybit ranks among the largest digital asset breaches in the crypto sector. The incident triggered mass withdrawals that totaled more than $5 billion across its user base. CEO Ben Zhou confirmed that the platform had sufficient assets to offset the loss if recovery failed.
By March, Bybit had begun to recover its lost ground, returning to 7% of its previous market share. The company reportedly distributed over $2 million in bounties to individuals providing useful information. As of late March, Bybit had frozen nearly 89% of the traceable stolen assets. eXch’s closure reflects the growing pressure on platforms linked to cybercrime allegations. It also raises questions about future operational standards in the digital asset space.
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