By Bardil 
The embattled cryptocurrency exchange **eXch** has announced its decision to cease operations in May following allegations of involvement in laundering funds stolen during the record-breaking **Bybit** exploit earlier this year.
In February, hackers orchestrated one of the largest cryptocurrency heists in history, siphoning nearly $1.5 billion worth of **Ethereum (ETH)** and **Lido Staked Ether (stETH)** from **Bybit**. The breach has been attributed to the notorious **Lazarus Group**, a North Korean cybercriminal organization linked to numerous high-profile crypto hacks.
Blockchain research firm **Elliptic**, alongside pseudonymous on-chain investigator **ZACHXBT** and other analysts, revealed that **Lazarus Group** allegedly utilized **eXch** as part of their money-laundering process. While **eXch** denied the allegations, it conceded that it processed a minor portion of the stolen funds.
This week, **eXch** announced its impending shutdown on May 1 via the **BitcoinTalk** forum. The exchange cited an “active transatlantic operation” targeting its infrastructure, as confirmed by “friends” in the state intelligence sector. In a statement, **eXch** expressed reluctance to continue operations in a hostile environment, emphasizing that the decision was made to avoid harm to innocent parties.
“Even though we have been able to operate despite some failed attempts to shut down our infrastructure (attempts that have also been confirmed to be part of this operation), we don’t see any point in operating in a hostile environment where we are the target of SIGINT (Signals Intelligence) simply because some people misinterpret our goals. Starting from the date of the merger with a new management team this month, and as a result of some urgent meetings, the majority of us voted to cease and retreat instead of going against strong winds, because none of us want to cause any harm to innocent people or this forum.”
This development marks a significant moment in the ongoing battle against cybercrime in the cryptocurrency sector, as authorities intensify efforts to curb illicit activities tied to high-profile hacks.
Generated Image: Midjourney
Sources:
– Elliptic
– ZACHXBT
– BitcoinTalk