German authorities have seized $38 million worth of cryptocurrency from eXch, a crypto platform allegedly involved in laundering funds from the historic $1.4 billion Bybit hack. Announced on May 9 by Germany’s Federal Criminal Police Office (BKA) and Frankfurt prosecutors, the seizure involved assets like Bitcoin, Ether, Litecoin, and Dash—marking the third-largest crypto confiscation in BKA history.

In addition to the crypto haul, law enforcement took down eXch’s servers, collecting over 8 terabytes of data. The platform, in operation since 2014, reportedly processed around $1.9 billion in transactions, many of which are suspected to be from illicit sources.

Described by the BKA as a crypto “swapping” service, eXch allowed users to exchange digital assets without any Anti-Money Laundering (AML) protocols. Authorities say the platform played a key role in laundering funds stolen during the Bybit hack on February 21, 2025, including $35 million in crypto traced by blockchain investigator ZachXBT.

ZachXBT further linked eXch to laundering proceeds from other high-profile crypto thefts, including the $243 million Genesis creditor hack and exploits involving Multisig and FixedFloat. Despite initially denying involvement, eXch announced in mid-April it would shut down operations by May 1, citing increased surveillance and pressure.

Prosecutor Benjamin Krause emphasized the broader implications of crypto mixers like eXch, calling them vital tools for criminals to obscure illegal funds. He warned that such services fuel the underground economy by helping disguise assets from hacking, card fraud, and other cybercrimes.