Crypto mixer eXch shuts down, launches 50-BTC privacy fund
The eXch API will remain available to partners for a limited time
Starting May 1, Czech-based privacy-focused crypto exchange eXch will cease operations as the company faces law enforcement investigations related to its alleged use in laundering funds stolen in the $1.5 billion Bybit hack.
In an April 17 announcement on the Bitcoin forum, the eXch team stated that the project had become the target of a “transatlantic operation” aimed at shutting it down and potentially prosecuting key members for money laundering and terrorism.
The Czech exchange, known for minimal "Know Your Customer" (KYC) requirements, emphasized that it was created as a privacy experiment without financial motives. The team denied any intent to support illegal activity. Although often labeled a "mixer," eXch clarified it is a privacy-focused instant exchange rather than a traditional coin mixer.
The team claims to have received information from insiders within the "government intelligence sector" confirming its inclusion in investigations related to crypto asset laundering.
As reported by Crypto.news, following the Bybit hack, eXch initially denied laundering stolen funds but later acknowledged it had processed a “small portion” of the hacked assets.
Blockchain analytics firms like Elliptic and TRM Labs identified eXch as a key node in the laundering of assets after the February 21 exploit, in which 401,000 Ethereum was drained from Bybit’s cold wallet.
Is privacy always a crime?
In its shutdown message, eXch criticized centralized exchanges for what it called "senseless policies" that fail to effectively prevent money laundering.
The team reiterated its mission to protect user privacy and announced the launch of a 50 BTC fund to support open-source privacy projects in the Bitcoin and Ethereum ecosystems.
Despite the closure, eXch warned that shutting down the platform would not eliminate illicit crypto activity. “The idea that shutting down eXch will stop all money laundering in the world is laughable,” the statement read.
The eXch API will remain available to partners for a limited time while a transition team manages the platform’s wind-down.
As we wrote, February 21, 2025 – a day the crypto community will not forget. One of the largest cryptocurrency exchanges, Bybit, fell victim to a daring cyberattack, resulting in the theft of 401,346 ETH (approximately $1.4 billion). This hack became the largest in crypto history, surpassing even the infamous Mt. Gox breach.
