German law enforcement authorities have confiscated cryptocurrency worth approximately $38 million (34 million euros) from a digital currency platform named eXch, which is reportedly linked to the laundering of stolen funds from the February 2025 Bybit exchange hack. This operation, carried out by Germany’s Federal Criminal Police Office (BKA) along with the Frankfurt public prosecutor’s office, stands as one of the largest crypto-related seizures in the country’s history. According to official statements released on May 9, the crypto assets recovered include Bitcoin, Ether, Litecoin, and Dash.
The seizure is part of an ongoing investigation into the digital platform eXch, which was found to be involved in unauthorized crypto swapping services. The BKA stated that eXch enabled the transfer and exchange of digital currencies without following Anti-Money Laundering (AML) procedures. The platform operated without oversight for over a decade, starting in 2014, and processed around $1.9 billion in digital assets over the years. A considerable share of these funds is believed to have originated from criminal activities, including cyberattacks and illegal online operations.
Authorities confirmed that eXch played a role in the movement of stolen funds following the Bybit breach, in which hackers made away with more than $1.4 billion. A portion of these assets was reportedly laundered through eXch, according to findings by crypto analysts and law enforcement. Security researcher ZachXBT, who has been tracking such activities, was among the first to reveal that roughly $35 million from the Bybit hack had passed through eXch. He also noted that the same service had been used in other cases of laundering, including thefts from platforms like Multisig and FixedFloat, and even a large-scale phishing campaign.
In addition to confiscating the cryptocurrencies, German officials also shut down eXch’s server infrastructure, which was based in Germany. More than eight terabytes of data were seized from the servers during the operation. The platform had already announced in April that it would terminate operations by May 1, citing pressure and increased scrutiny. In a public post, the operators of eXch denied their involvement in laundering activities but admitted they could no longer function due to the hostile environment.
Benjamin Krause, a senior prosecutor involved in the case, said the action was necessary to prevent digital currencies from being used to hide illegal money. He described crypto-swapping services like eXch as tools that allow criminals to mask the origins of stolen assets, making it easier to reintroduce them into legal financial systems. According to him, cracking down on such services is crucial for disrupting the underground economy that benefits from cybercrime and illegal trade.
