News

German Authorities Seize €34 Million in Crypto from eXch Exchange in Major Money Laundering Crackdown

by Crypto Hobby

Updated June 07, 2025

German authorities have successfully shut down eXch, a cryptocurrency swapping service, seizing approximately
€34 million ($38 million) in various cryptocurrencies. The operation, a collaborative effort with Dutch officials,
marks one of Germany's largest crypto seizures and targets a platform accused of facilitating extensive money laundering,
including funds from major hacks.

Operation Uncovers Vast Money Laundering Network

On April 30, 2025, Germany's Federal Criminal Police Office (BKA), in conjunction with Frankfurt prosecutors and Dutch officials,
executed a significant operation against eXch.cx. The BKA seized the platform's online infrastructure, including its German servers,
and confiscated 8 terabytes of data. This action led to the seizure of €34 million in cryptocurrencies, including Bitcoin, Ether, Litecoin, and Dash.

Key Takeaways

Third Largest Seizure: This operation represents the third-largest crypto asset seizure in the history of Germany's federal criminal police office.
International Collaboration: The successful shutdown was a result of a joint effort between German and Dutch authorities.
Significant Data Seizure: Authorities confiscated 8 terabytes of data, which is expected to provide crucial evidence for ongoing investigations.
Targeted Criminal Activity: eXch was specifically designed to avoid anti-money laundering (AML) measures, making it attractive to criminals.

eXch's Role in Illicit Activities

eXch, operational since 2014, offered cryptocurrency swapping services without requiring user identification or storing user data.
This lack of AML measures made it a preferred platform for concealing financial flows from illicit activities.
Estimates suggest that approximately $1.9 billion in cryptocurrency assets were transferred through the service.
Notably, a portion of the $1.46 billion stolen in the Bybit hack earlier this year, specifically around $200 million,
is believed to have been laundered through eXch.

Preemptive Shutdown and Official Statements

Interestingly, eXch had announced its own plans to cease operations by May 1, 2025, citing an "active transatlantic operation"
aimed at shutting them down. Despite their claims of never intending to enable illicit activities, blockchain intelligence firm
TRM Labs reported observing on-chain activity linked to child sexual abuse material (CSAM) threat actors, with over $300,000
in CSAM-related funds directly exposed to the service. The Dutch Fiscal Information and Investigation Service (FIOD) emphasized
that while they respect privacy, they will act when services are heavily abused for criminal purposes, stating, "Privacy is not the problem – criminal misuse is."