Allegations that eXch helped launder money for the infamous Lazarus Group have shocked the cryptocurrency community. The exchange has now stated that it will shut down on May 1. The hack of Bybit, which cost $1.4 billion and was one of the biggest cyber thefts in crypto history, led to the closing.
“Cease and Retreat” Strategy Under Global Pressure
eXch said in a public statement on April 17 that most of its management had voted for a “cease and retreat” plan. There were claims that the Lazarus Group, which is backed by North Korea, used the platform to launder about $35 million from the Bybit hack. The exchange said it was dealing with an “active transatlantic operation” that might involve court action and said the situation was getting “hostile.”
From Turndown to Acceptance
Initially, eXch denied having any part in laundering digital assets. In the end, though, it confirmed that it had handled an “insignificant portion of funds” from the February hack. The management said user privacy was essential to building their platform. They were criticizing other exchanges for “abusing customers” under the name of anti-money laundering rules.
The Huge Bybit Hack
The Bybit breach is still one of the biggest in crypto history. Users withdrew over $5 billion. Bybit’s CEO, Ben Zhou, told users that the platform could cover the costs, but the company had to shut down some of its Web3 operations, such as its NFT marketplace. As of March 20, about 89% of the stolen money had been found, and bounty hunters received over $2 million for tips that could be used.
A Standard for Privacy or a Warning to Others?
The crypto world is wondering how to balance the delicate balance between user privacy and global legal compliance as eXch gets ready to shut down. Although the exchange said it was not guilty, the accusations and subsequent shutdown are a stark warning that crypto platforms are not immune to scrutiny and must be careful as the law changes.
Conclusion
The closing of eXch marks the start of a new age of responsibility in crypto. Whether the exchange was a privacy protector or a crime-supporting platform, its shutdown shows that regulators and cyber-security teams no longer disregard financial misconduct globally.
