eXch, a cryptocurrency exchange known for its commitment to privacy and operating without Know-Your-Customer (KYC) regulations, has revealed plans to shut down by May 1, 2025. This decision follows serious allegations connecting the platform to the $1.4 billion hack of Bybit in February 2025, an attack believed to have been carried out by North Korea’s notorious Lazarus Group, with claims that funds were laundered through eXch.
On April 17, 2025, eXch confirmed that its infrastructure is under investigation as part of a “transatlantic operation,” with the potential for criminal charges related to money laundering and financing terrorism. This operation stems from information provided by a whistleblower associated with the U.S. Department of Justice (DOJ).
CEO Responds to Growing Scrutiny
Johann Roberts, the CEO of eXch, expressed his dissatisfaction with the situation, stating that there was no value in continuing to operate in a hostile environment. He remarked, “We don’t see any point in running our business when we are under constant SIGINT scrutiny simply because some people misunderstand our objectives.” SIGINT, referring to Signals Intelligence, highlights the level of surveillance that eXch is currently facing.
Initially, eXch rejected accusations of laundering money on behalf of Lazarus or the Democratic People’s Republic of Korea (DPRK), attributing the discrepancies to outdated data from its external anti-money laundering (AML) service provider. The exchange claimed this delay resulted in a 12-hour gap in updating critical details related to the Ethereum addresses involved in the hack. However, further investigations revealed that eXch had processed a small portion of the stolen assets—around 90,000 Ethereum (ETH)—which were laundered through a variety of centralized and decentralized services. This was only a fraction of the 401,346 ETH taken during the Bybit breach.
Roberts also pointed out that Bybit had refused to cooperate with eXch, suggesting that earlier “direct attacks” on the platform had harmed its reputation and damaged professional ties within the industry.
eXch Critiques Industry Standards
eXch’s business model, which eschews KYC requirements and allows users to trade without creating accounts, has long been a point of contention. This has drawn the attention of investigative firms like Elliptic and ZachXBT, who have raised concerns about the platform’s potential role in facilitating illicit activity.
In response, Roberts criticized the “elitist” nature of the cryptocurrency industry, particularly targeting platforms that promote privacy. He revealed that Elliptic had denied eXch’s requests for services due to its focus on user anonymity.
In its final statement, eXch took aim at the current state of anti-money laundering (AML) practices in the crypto space, calling them “illogical and ineffective.” The platform argued that these regulations often fail to prevent illegal activities while violating the very principles of user privacy that eXch was built upon.
Future of eXch
Though eXch is slated to shut down by May 1, it will continue offering API access to its partners during this period. The company has left the door open for potential restructuring or rebranding under new management, raising questions about the future direction of the platform.
eXch’s closure brings to light the ongoing struggles of privacy-centric exchanges in the cryptocurrency industry, highlighting the complex balance between protecting user privacy and adhering to regulatory pressures. This marks a significant moment in the larger conversation about how privacy and regulation intersect in the fast-evolving world of digital currencies.
As the cryptocurrency industry continues to mature, the fate of privacy-focused exchanges remains uncertain, with many industry participants and regulators keenly watching how future events unfold.
