Bybit Hack Triggers $38M Seizure and Shutdown of eXch in Germany

Bybit Hack Leads to Shutdown of Crypto Platform eXch in Germany Probe

Germany has officially taken down a crypto exchange called eXch, seizing $38 million in crypto assets as part of a major investigation linked to the world’s largest digital currency hack. The Bybit hack, which took place on February 21, 2025, saw North Korean hackers steal $1.5 billion worth of Ethereum from the Dubai-based exchange Bybit ZachXBT reported it first through the post on X (formerly Twitter).

$38M Seized from eXch in Major Police Operation

On May 9, 2025, German police seized around €34 million ($38 million) in digital assets and shut down the digital currency platform eXch. The seizure was announced by Germany’s Federal Criminal Police Office (BKA) and the public prosecutor in Frankfurt. Bybit hack is now recorded as the country’s third-largest crypto confiscation ever.

The seized assets included Bitcoin (BTC), Ethereum (ETH), Dash (DASH), and Litecoin (LTC). Authorities also captured over eight terabytes of server data from eXch, which is expected to help investigators track more illegal activity.

How eXch Was Linked to the Bybit Hack

Investigators believe that the platform played a key role in helping the hackers behind the Bybit breach hide and move the stolen Ethereum. The attackers used this platform to swap tokens and move funds across blockchains, making the money harder to trace. Cybersecurity experts, including well-known blockchain investigator ZachXBT, helped trace these movements soon after the attack happened.

Source: ZachXBT 

The hackers, believed to be part of North Korea’s Lazarus Group, used a range of mixing platforms and bridges like Chainflip to convert Ethereum to other coins such as Bitcoin. Some of these funds even made their way through other platforms involved in past hacks like Multisig and FixedFloat.

A History of Hidden Crypto Swaps

Founded in 2014, eXch was known for offering fast crypto swaps without any user verification. It didn’t follow any Know Your Customer (KYC) or Anti-Money Laundering (AML) rules. Over time, it processed more than $1.9 billion in digital currency, much of which is now believed to be linked to illegal activities.

The platform was available on both the regular web and the darknet. Its lack of rules attracted users who wanted to hide their transactions, including cybercriminals. Authorities say this made that platform a popular tool for money laundering.

Platform Tried to Shut Down Before Police Got Involved

The platform announced in mid-April 2025, that the organisation is going to shut down by May 1 because of increasing pressure from the regulators and inspection agencies. The team of the eXch platform claimed that they are being targeted unfairly and misinterpreted. However, German police took the step before the deadline, expected to eliminate the final transaction of stolen funds. 

What This Means for Crypto Crime

This Bybit case is a signal that organisations are taking investigation against crypto platforms that do not abide by the regulations and international laws. With this move of taking down eXch, the court of law has communicated a strong message to the organisations that are using digital assets for criminal activities. 

As the inspection proceeds, more information will come forward about the amount of stolen funds, hackers and other platforms included in this whole laundering activity. 

The cryptocurrency industry is watching closely, because this may just be the start.