Crypto mixer eXch to close amid Bybit hack laundering link

Exchange exchange focused on privacy will cease operations on May 1 following increasing allegations that it was used to whiten the stolen funds in the hacking of $ 1.5 billion.

In an April 17 notice On the Bitcoin forum, the Exch team said that the project had become the target of a “transatlantic operation” aimed at stopping it and potentially pursuing key figures for money laundering and terrorism.

The exchange based in Czech, known for minimum requirements of knowledge of your customer, stressed that it had been created as a confidentiality experience without financial objectives. He denied any intention to facilitate illegal activity. Although the broc has often been labeled a “mixer”, the team said it is an instant confidentiality exchange, not a traditional parts mixer.

The team claims to have received contact information in the “state intelligence sector” which confirmed its inclusion In current surveys linked to the whitening of cryptographic assets.

The exchange had previously denied the accusations of money laundering of the appeal hackInitially rejecting information according to which he had helped the Lazare group in North Korea. However, he later recognized the treatment of a “small part” of the hacked funds.

Blockchain analysis companies like Elliptic and TRM Labs reported Exch as a key center in the whitening process. After the feat of February 21 which drained ~ 401,000 Ethereum (Ethn) By Bybit’s cold portfolio, the Lazare group used a network of decentralized exchanges, transversal bridges and confidentiality tools, including Exch, to hide the origin of stolen assets.

In his notice of closure, Echs criticized the centralized exchanges for what he called “absurd policies” which fail to significantly stop money laundering. He reaffirmed his mission to defend user confidentiality and announced a 50 bitcoin (BTC) Fund to support projects to improve open source confidentiality in Bitcoin and Ethereum ecosystems.

Despite its closure, Exch warned that the closure of its platform would not eliminate illegal activity in the crypto. “The objective of stopping Exch under the belief that it can stop any money laundering in the world is ridiculous,” the statement said.

The Exch API will remain available for partners for a limited period, while an incoming management team determines the final transition from the platform. “Privacy is not a crime,” concludes the announcement.