German law enforcement has confiscated €34 million ($38 million) worth of cryptocurrency from the platform eXch, as part of an extensive crackdown against money laundering and non-compliant exchanges. Authorities allege eXch played a central role in laundering illicit funds, particularly those linked to the record $1.4 billion Bybit hack from February 2025. The seized assets included prominent cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Dash (DASH).
The operation, led by the Federal Criminal Police Office (BKA) and Frankfurt’s main prosecutor’s office, also resulted in the shutdown of eXch’s German server infrastructure and the cessation of its service. eXch had operated a swapping service since 2014, reportedly processing nearly $1.9 billion in crypto transfers, including a significant portion believed to originate from criminal activities. Authorities cited the platform’s lack of adherence to KYC and AML laws, facilitating the free movement of stolen and illicit funds.
This enforcement action is part of Germany's broader effort to fortify regulatory standards within the industry and demonstrates increased scrutiny on exchanges operating without adequate compliance measures. Other exchanges are now intensifying their own KYC protocols, with analysts predicting stricter global regulatory frameworks ahead that may affect operational costs, user trust, and broader crypto adoption trends.