Crypto exchange eXch has announced it will shut down operations on May 1, amid charges that it was used to launder funds from a major hack involving Bybit.
eXch Shuts Down!
In a notice dated April 17, the company revealed that the majority of its leadership voted in favor of closing the exchange, citing claims that North Korea’s Lazarus Group funneled approximately $35 million through eXch after carrying out a $1.4 billion theft from Bybit.
The firm said it is currently the target of “an active transatlantic operation,” which it believes is aimed at dismantling its infrastructure and potentially bringing legal action. According to the notice, while eXch had survived earlier attempts to damage its operations, confirmed to be linked to this same effort, the ongoing scrutiny made it unsustainable to continue.
“We’ve managed to stay online despite several sabotage attempts, but it’s become clear we’re operating in an environment where we are being surveilled through SIGINT simply due to misconceptions about our mission,” the exchange said in its statement.
Even as eXch previously denied allegations from blockchain investigators suggesting its involvement in laundering crypto for Lazarus Group, it later acknowledged that it had unknowingly processed a small amount of funds tied to the February hack. As part of its shutdown announcement, the team reiterated its commitment to user privacy and criticized what it called the “abusive policies” of other exchanges under the guise of anti-money laundering measures.
After the February exploit, Bybit CEO Ben Zhou initially assured users that the exchange had the financial capacity to absorb the losses, though the company later opted to shut down certain Web3 offerings, including its NFT marketplace.
Despite the setback, Bybit had recovered its pre-hack market share of roughly 7% by April 10.
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