eXch Denies Money Laundering Allegations Linked to Bybit Hack

eXch Faces Accusations from Blockchain Analysts Over $35M Laundering

eXch Rejects Money Laundering Allegations

Crypto exchange eXch has denied claims that it helped launder $35 million from the Bybit hack for North Korea’s Lazarus Group. The company said it is not involved in money laundering for Lazarus or North Korea.

eXch admitted that a small part of the stolen funds passed through its platform. However, it said this was a one-time event and not something it did on purpose. The exchange also promised that any money it earned from those transactions would be donated to help the public.

The exchange insisted it is “not laundering money for Lazarus/DPRK” and the company assured users that its business and funds were safe and not affected by these claims.

On-Chain Analysts and Security Firms Point to eXch

Even though eXch has denied the claims, some blockchain experts and security companies still say the exchange was involved in money laundering. Analysts like ZachXBT and the security firm SlowMist believe eXch helped process stolen money.

ZachXBT wrote in a Telegram post that eXch handled $35 million in stolen funds. He also said the exchange made a mistake and sent 34 Ether (worth about $96,000) to another exchange’s hot wallet.

Nick Bax, who is part of the white hat hacker group called Security Alliance, estimated that eXch processed about $30 million for North Korea. SlowMist also reported that a large amount of Ethereum (ETH) was changed into other cryptocurrencies using eXch.

The largest crypto hack in history: Bybit’s $1.4 Billion Hack

The Bybit cryptocurrency exchange had the largest crypto hack in history, with hackers stealing 401,347 ETH (over $1.46 billion) in 2025. 

The breach occurred during a routine transfer between wallets, where attackers manipulated the signing system and exploited Bybit’s multi-signature security. 

Investigations show that the Lazarus Group, which is linked to North Korea, might be behind the hack. The attack had a big impact on the crypto market. It caused Ethereum’s price to drop sharply.

This has made people worry more about the safety of cryptocurrency. It also shows that even big exchanges can have security weaknesses.

Efforts to Freeze Stolen Funds Face Resistance

Bybit was once accused of calling Pi a scam, but later, it found itself at the center of a scam controversy. The company became a suspect in fraudulent activities, and one of its managers was even jailed for scamming users through Bybit.

Despite its scandal, Bybit has been working with industry partners to recover stolen funds and has successfully frozen over $42 million. Bybit’s Ex-WeChain Manager Jailed for $5.7M Crypto Theft. However, not all exchanges have been cooperative, with eXch refusing to assist in the process.

When Bybit’s risk team reached out to eXch, requesting it to freeze the hacked funds, eXch pushed back. Instead of complying, eXch accused Bybit of previously freezing its users' deposits without explanation, claiming this had harmed its reputation.