Crypto Exchange eXch to Shut Down Amid North Korea Money Laundering Allegations

The crypto space is once again under the limelight with popular crypto exchange eXch declaring it will shut down all operations effective May 1, 2025. The move, announced on April 17, comes amid serious charges that the platform was utilized to launder money associated with the Bybit hack, purportedly conducted by North Korea's Lazarus Group.
eXch Refers to "Cease and Retreat" Strategy Under Rising Pressure

In its press release, eXch announced that the management team made a collective decision to close operations in light of growing legal and operational risks. Labeling itself as the focal point of a "transatlantic operation", the exchange said there were several attempts at breaching its infrastructure. But it explained that it could no longer survive to operate in such a "hostile environment" of threats.

Lazarus Group Link: $35 Million Allegedly Laundered Through eXch

Investigative stories indicate that some $35 million of the $1.4 billion hacked on Bybit flowed through eXch. At first, the exchange had nothing to say. Later, though, it conceded to processing what it referred to as an "insignificant portion" of the hacked funds. That admission only stoked regulatory attention and public outrage.

Privacy vs Regulation: eXch's Defense

In its goodbye note, eXch emphasized its focus on user privacy, denouncing other platforms for instituting "nonsensical policies" that undermine customer autonomy. The group claimed that its privacy-focused approach was being mistaken for condoning illegal activity, while in reality, its mission was to support transparency and autonomy in the crypto ecosystem.

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The Bybit Hack: One of Crypto's Biggest Cyberattacks

Bybit hack is now ranked as one of the largest thefts in the history of crypto. The hack resulted in more than $5 billion worth of withdrawals, with a confirmed loss of $1.4 billion. CEO Ben Zhou promised the users that the company was financially healthy enough to sustain losses if needed. In response, Bybit closed down its NFT marketplace and temporarily halted some Web3 services.

Bounty Programs and Fund Recovery

To follow the stolen capital, Bybit initiated a bounty program, giving away more than $2 million in bounties. As of March 20, about 89% of the hacked assets had been traced and immobilized. As of April 10, Bybit regained around 7% of its pre-hack market share, reflecting signs of recuperation.