Massive Crypto Seizure: Germany Strikes Blow Against Bybit Hack Launderers with $38M Haul
Big news from Europe! German law enforcement has just delivered a significant blow to illicit crypto operations, executing a major Germany crypto seizure tied directly to one of the biggest crypto hacks on record. This action highlights the ongoing global effort to track and recover stolen digital assets and disrupt money laundering channels.
Germany’s Significant Crypto Seizure
The Federal Criminal Police Office (BKA) and Frankfurt’s main prosecutor’s office announced on May 9th a substantial seizure of cryptocurrency. The total haul amounts to 34 million euros, equivalent to approximately $38 million USD. This operation targeted a platform identified as eXch.
The assets confiscated include:
- Bitcoin (BTC)
- Ether (ETH)
- Litecoin (LTC)
- Dash (DASH)
According to the authorities, this seizure represents the third-largest crypto confiscation in the history of the BKA, underscoring the scale and importance of the operation. Alongside the digital assets, they also seized eXch’s German server infrastructure, containing over eight terabytes of data, effectively shutting down the platform’s operations.
The Link to the Bybit Hack and Crypto Laundering
Authorities allege that the eXch exchange platform played a role in laundering funds stolen during the massive $1.4 billion Bybit hack that occurred in February 2025. eXch is described as a ‘swapping’ service that operated without implementing necessary Anti-Money Laundering (AML) measures since 2014.
The platform reportedly facilitated an estimated $1.9 billion in crypto transfers over its lifespan. Investigators believe a portion of these transfers were of ‘criminal origin,’ including assets linked to the Bybit incident. The BKA statement explicitly mentioned, “Among other things, a portion of the $1.5 billion stolen from the Bybit crypto exchange, which was hacked on February 21, 2025, is said to have been exchanged via eXch.”
Crypto sleuth ZachXBT was one of the first to connect eXch to the Bybit hack, reporting on the platform’s involvement in laundering approximately $35 million soon after the exploit was confirmed. ZachXBT noted that funds from the hack were transferred to a new address and then laundered via eXch, using services like Chainflip to bridge assets between different blockchains like Ether and Bitcoin.
eXch’s Role in Broader Crypto Laundering Cases
Beyond the Bybit incident, ZachXBT’s analysis indicates that the eXch exchange was allegedly used in laundering millions from several other notable crypto thefts and exploits, including:
- Multisig
- FixedFloat
- The $243 million Genesis creditor theft
ZachXBT also stated that eXch had links to numerous phishing drainer services over recent years, reportedly refusing to block addresses or freeze orders associated with illicit funds. This paints a picture of a platform actively enabling crypto laundering on a significant scale.
eXch’s Shutdown and Authorities’ Stance
After initially denying involvement in the Bybit hack laundering, eXch eventually announced in mid-April that it would terminate services by May 1st. In a Bitcoin Talk post, the platform cited operating in a “hostile environment” and being a target of “SIGINT” as reasons for the shutdown, suggesting external pressure.
Senior public prosecutor Benjamin Krause emphasized the critical need to combat anonymous money laundering avenues. He stated, “Crypto swapping is an essential component of the underground economy, used to conceal incriminated funds from illegal activities such as hacking or trading in stolen payment card data, thus making them available to perpetrators.” This statement reinforces the view that services like eXch are seen by law enforcement as key enablers of cybercrime by facilitating crypto laundering.
Summary
The recent Germany crypto seizure of $38 million from the eXch platform marks a significant step in the fight against cybercrime and crypto laundering. Linked directly to the massive Bybit hack and several other exploits, eXch allegedly provided a crucial service for criminals to swap and conceal stolen digital assets without AML checks. This action by the BKA, one of their largest crypto confiscations ever, along with the shutdown of eXch’s infrastructure, sends a strong message that law enforcement agencies are increasingly capable and determined to pursue illicit activities within the cryptocurrency space, no matter how complex the trail.
