Crypto Exchange eXch to Shut Down Amid Allegations of Lazarus Group Ties

Privacy-focused cryptocurrency exchange, eXch, has announced that it will cease operations amid growing allegations that it helped launder funds tied to the recent $1.4 billion Bybit hack. The exchange stated that it will close down the platform on May 1.

eXch to Shut Down on May 1

In an official statement posted on Bitcointalk, eXch pointed out that the decision to shut down the platform was in response to allegations and increasing regulatory scrutiny. The team revealed that the platform is currently the target of an “active transatlantic operation” aimed at shutting it down.

They stated that they received reliable intel from sources within the “state intelligence sector” that eXch was part of ongoing investigations into the laundering of stolen crypto assets. In response, the majority of the platform’s management team voted to “cease and retreat”. 

“We don’t see any point in operating in a hostile environment where we are the target of SIGINT simply because some people misinterpret our goals… the majority of us voted to cease and retreat instead of going against strong winds,” they said.

eXch’s Alleged Ties to Lazarus Group

Earlier in February, Bybit suffered one of the largest heists in the history of the crypto industry, with over $1.4 billion stolen. It was later discovered that the notorious North Korean Lazarus Group was behind the attack.

Following the hack, several on-chain analytics platforms suggested that eXch played a key role in laundering the stolen funds. The reports alleged that Lazarus Group used eXch to launder approximately $35 million from the hack.

Initially, eXch denied the accusations. However, the platform later admitted that it processed a small portion of the funds stolen.

Furthermore, the exchange criticized other projects that impose “nonsensical policies” on customers in an attempt to stop money laundering. eXch warned that shutting down its platform would not effectively prevent malicious actors from laundering their stolen funds. 

“The goal of stopping eXch under the belief that it may stop all money laundering in the world is ridiculous.”

Additionally, eXch pledged to support open-source projects working to enhance user privacy in the Bitcoin and Ethereum ecosystem. The exchange unveiled a 50 BTC fund (approximately 4.2 million) geared toward this initiative.

Notably, eXch partners would continue to access the platform’s API for a limited period. However, following the closure on May 1, a new management team will take over the platform’s infrastructure.