The eXch crypto exchange has decided to shut down its operations by May 1st due to accusations of aiding money laundering hackers involved in the theft of $1.5 billion from Bybit. The decision to close the exchange was made by the majority of the management team following the allegations. The hack on Bybit was the largest in the history of the crypto industry, with the North Korean Lazarus Group identified as the perpetrators. The group managed to launder the stolen funds, with THORchain earning $5.5 million and eXch earning $35 million in the process. An engineer from Nine Realms with the alias Pluto (9R), who was involved in the development of THORChain, initially defended the project but later decided to step down.
Initially, the management of eXch denied reports from crypto detectives about their involvement in money laundering for the Lazarus Group. However, they later admitted to processing “a small portion of the funds.” Despite these revelations, Bybit continues to operate and has stated that it has sufficient resources to cover the losses incurred. The exchange also announced the closure of its Web3 service and NFT marketplace. As of April 10th, Bybit has managed to recover approximately 7% of its market share, reaching the level it had before the hack occurred.
The eXch exchange claimed that it has been the target of an ongoing transatlantic operation aimed at shutting it down and potentially taking legal action against it. The developments surrounding the closure of eXch have raised concerns within the crypto community about the prevalence of money laundering activities and the implications for other exchanges.
It is crucial for exchanges and regulators to remain vigilant and take appropriate measures to prevent such instances of hacking and money laundering in the crypto industry. The closure of eXch serves as a stark reminder of the risks involved in the digital asset space and the need for enhanced security measures to protect investors and prevent illicit activities.
As the crypto industry continues to evolve and attract more participants, it is essential for stakeholders to collaborate and implement robust security protocols to safeguard the integrity of the market. By learning from the experiences of exchanges like eXch, the industry can strengthen its defenses against cyber threats and ensure a safer environment for all participants.
In conclusion, the closure of eXch due to allegations of aiding money laundering hackers highlights the challenges faced by cryptocurrency exchanges in maintaining security and integrity in the digital asset space. By addressing these challenges and working together to implement best practices, the industry can build a more secure and resilient ecosystem for the future.