Massive Seizure of Crypto Platform “eXch” Marks Major Victory in Global Money Laundering Crackdown

In a sweeping international law enforcement operation, authorities dismantled the crypto swapping service “eXch” on April 30, 2025, seizing its entire server infrastructure and freezing an estimated €34 million in digital assets, including Ether (ETH), Litecoin (LTC), and Dash (DASH). The operation, led by the German Federal Criminal Police Office (BKA) in cooperation with the Dutch Fiscal Information and Investigation Service (FIOD), also resulted in the recovery of more than eight terabytes of transaction records and user data, revealing that eXch had enabled the anonymous exchange of cryptocurrencies linked to criminal activity since 2014.

During the raid, investigators secured digital currencies such as Bitcoin (BTC), Ether, Litecoin, and Dash in one of the BKA’s largest cryptocurrency seizures to date. The sheer volume of recovered data underscored both the complexity and the scale of the operation. Authorities believe that the platform facilitated nearly $1.9 billion in digital transactions over its eleven-year lifespan, a substantial portion of which was tied to criminal schemes. Among these was the February 21, 2025 hack of the Bybit exchange by the notorious Lazarus Group, which saw $1.5 billion in Ether stolen and laundered via eXch.

eXch had operated openly since 2014, promoting itself across both the clearnet and darknet as a tool for anonymous “crypto swapping” between digital currencies. The platform boasted a complete absence of identity checks or data retention, making it a magnet for users seeking to evade anti-money laundering (AML) regulations. This blatant disregard for regulatory compliance made the service a prime target under European AML statutes.

German prosecutors initiated charges under Section 261 of the German Criminal Code (Strafgesetzbuch, StGB), which outlaws commercial money laundering. They also pursued violations under Section 15 of the Money Laundering Act (Geldwäschegesetz, GwG), which compels financial service providers to conduct due diligence on customers. eXch’s business model, which deliberately bypassed these requirements, also placed it in violation of the EU’s Fifth Anti-Money Laundering Directive (5AMLD), which mandates customer verification, ongoing transaction monitoring, and prompt reporting of suspicious activity.

The success of the operation was made possible by close international coordination, particularly with the Dutch FIOD. Investigators from both nations collaborated to map the server infrastructure, track transaction patterns, and trace the flow of illicit Bitcoin. Intelligence gathered by the Dutch authorities played a decisive role in planning and executing the German-led raid.

Carsten Meywirth, head of the BKA’s Cybercrime Division, emphasized the magnitude of the breakthrough, stating: “Once again, we have secured a record-breaking sum of millions in incriminated cryptocurrencies and shut down a digital money laundering platform. The scale of the incident impressively demonstrates that cybercrimes are being committed on an industrial scale. We will continue to increase the risk of loss for the underground economy with all the means at our disposal. Our goal remains to hold those responsible accountable.”

Beyond the immediate asset seizure, authorities confiscated the platform’s entire user database, including interaction logs, wallet addresses, and full transaction histories. Analysts are now combing through the eight terabytes of forensic data, which they believe will reveal extensive ties to ransomware operators, phishing networks, and hacker syndicates who used eXch to obfuscate the origins of stolen funds.

Officials expect the fallout from this data to catalyze additional investigations across the EU and beyond. The digital trail left behind by eXch is likely to expose a web of accomplices, money mules, and supporting infrastructure across multiple jurisdictions. Law enforcement agencies are already preparing follow-up actions aimed at dark web services and online marketplaces implicated in the laundering network.

This takedown comes on the heels of a series of aggressive crackdowns on cybercrime by German authorities. In 2024, “Operation Endgame” targeted major malware families, resulting in ten international arrest warrants and four provisional arrests. That same year, law enforcement shuttered 47 illicit digital currency exchanges operating within Germany. Among the most high-profile operations was the seizure of ChipMixer, which netted €90 million in digital assets, and the takedown of Dstat.CC under Operation PowerOff.

The eXch case also carries profound implications for compliance officers and financial institutions operating within the EU. Regulators are increasingly focused on enforcing the stipulations of 5AMLD, while the forthcoming Sixth Anti-Money Laundering Directive (6AMLD) promises even broader definitions of laundering offences and stiffer penalties. Entities offering either custodial or non-custodial crypto services are being urged to implement rigorous Know Your Customer (KYC) procedures, enhanced due diligence for high-risk users, and real-time transaction monitoring. The operation against eXch serves as a stark warning that the absence of such controls poses immense reputational and legal risk.

The decisive action against eXch reflects growing momentum in the global fight against cyber-enabled financial crime. By seizing €34 million in assets and eliminating a major laundering conduit, authorities have struck a blow against the infrastructure of the digital underground economy. Continued international collaboration, robust legislative enforcement, and vigilance by compliance professionals will be essential to defend against future threats and to uphold the integrity of the evolving financial landscape.

By fLEXI tEAM