eXch, a controversial cryptocurrency exchange, is closing its doors in May following accusations of laundering funds stolen in the massive Bybit hack.
The Bybit Hack and the Accusations
In February, hackers made off with nearly $1.5 billion in Ethereum (ETH) and Lido Staked Ether (stETH) from Bybit—the biggest crypto heist in history. Investigators, including blockchain research firm Elliptic and on-chain investigator ZachXBT, linked the Lazarus Group, a North Korean hacking group, to the crime. Elliptic specifically implicated eXch in laundering the stolen crypto. While eXch denied major involvement, admitting only to processing a “small” amount of the stolen funds.
eXch’s Closure Announcement
This week, eXch announced its May 1st closure on the BitcoinTalk forum. The exchange claimed it’s the target of a large-scale international intelligence operation, citing confirmation from “friends” in state intelligence. They stated that despite past attempts to shut them down, they’ve decided to cease operations rather than continue fighting what they describe as a hostile environment. The statement emphasized a desire to avoid harming innocent people.