Crypto exchange eXch to cease operations amid accusations of ties to Lazarus Group

Cryptocurrency exchange eXch has announced that it will cease operations on May 1, 2025, amid allegations of links to the Lazarus Group hacker group and participation in the laundering of more than $ 35 million related to the Bybit hack. The decision comes in response to mounting international pressure from law enforcement and investigators who discovered eXch was using stolen assets to convert them into Bitcoin and then mix them through anonymizing services.

The investigation found that eXch not only failed to implement proper KYC/AML procedures, but may have actively facilitated the circumvention of the transactions. The main amount — about 50 BTC — was traced to wallets linked to Lazarus, a North Korean cyber group believed to be involved in numerous attacks on crypto platforms since 2017.

Amid the scandal, eXch’s management issued a statement about its intention to «restore trust through full transparency» and introduced a refund program for users that will last until June 30. At the same time, the exchange announced the launch of the Privacy Pledge initiative, a pledge to donate 50 bitcoins to BTC $85,263.86 Bitcoin 0.73% Market capitalization $1.69 trillion VOL. 24 hours $0.6 billion to support projects to increase transparency in the crypto industry, including the development of new protocols for tracking illegal transactions.

The community’s reaction to this is mixed: some see the exchange’s actions as an attempt to save its reputation before it is completely shut down, while others see it as a gesture of responsibility in response to the systemic problem of privacy abuse in the cryptocurrency sector. The eXch case has become yet another signal to regulators of the need to strengthen control over platforms that can be used for global financial crimes.