News

Germany's Major Crypto Seizure: €34 Million Linked to Money Laundering

by Crypto Hobby

Updated May 31, 2025

Cash and cryptocurrency wallet in a law enforcement setting. — Germany's Major Crypto Seizure: €34 Million Linked to Money Laundering - thumbnail

German authorities have made a significant move against cryptocurrency-related crime by seizing €34 million ($38 million) in digital assets from the eXch platform, which has been linked to extensive money laundering activities. This operation marks one of the largest confiscations in Germany's history of combating cybercrime.

Key Takeaways

Seizure Amount: €34 million ($38 million) in various cryptocurrencies.
Platform Involved: eXch, operational since 2014, known for facilitating anonymous crypto swaps.
Criminal Links: Allegations of laundering funds from the Bybit hack and other illicit activities.
Data Seized: Authorities confiscated 8 terabytes of data alongside the crypto assets.

Overview of the Operation

On April 30, 2025, Germany's Federal Criminal Police Office (BKA) executed a coordinated operation that led to the shutdown of eXch, a cryptocurrency swapping service. The platform was accused of facilitating money laundering without implementing any anti-money laundering (AML) measures, making it a prime target for law enforcement.

The BKA reported that eXch had been operational since 2014 and had processed approximately $1.9 billion in cryptocurrency transactions, many of which were believed to be of criminal origin. The seized assets included popular cryptocurrencies such as Bitcoin, Ether, Litecoin, and Dash.

Allegations Against eXch

Authorities have highlighted several concerning aspects of eXch's operations:

Lack of User Identification: Users were not required to verify their identities, allowing for anonymous transactions.
Criminal Activity: The platform was reportedly used to launder funds from high-profile hacks, including the recent $1.4 billion Bybit hack.
Data Compromise: The seizure included 8 terabytes of data, which may provide further insights into the platform's operations and user activities.

The Bybit Hack Connection

The Bybit hack, which occurred on February 21, 2025, resulted in the theft of $1.4 billion in cryptocurrency. Investigations revealed that a portion of these stolen funds was funneled through eXch, raising serious concerns about the platform's role in facilitating criminal activities.

Estimated Laundered Amount: Approximately $200 million of the stolen funds from the Bybit hack were believed to have been laundered via eXch.
Criminal Networks: eXch was also linked to other significant thefts and scams, including funds from Multisig and FixedFloat exploits.

Response from Authorities

In light of these developments, the BKA and Dutch authorities have emphasized their commitment to tackling cryptocurrency-related crime. They stated:

Privacy vs. Crime: While they respect the right to privacy in digital transactions, they will not hesitate to act against services that are exploited for illegal activities.
Future Investigations: The operation is part of a broader investigation into individuals involved in money laundering and other illegal activities through eXch.

Conclusion

The seizure of €34 million in crypto assets from eXch underscores the ongoing battle against money laundering in the cryptocurrency space. As authorities continue to crack down on illicit activities, the future of anonymous crypto swapping services remains uncertain. This operation serves as a warning to those involved in similar activities that law enforcement is actively monitoring and taking action against such platforms.