In a significant development in the cryptocurrency world, embattled exchange eXch has announced its impending closure in May following allegations of its involvement in laundering funds from the record-breaking Bybit exploit earlier this year.
February 2024 witnessed one of the largest crypto heists in history, with hackers stealing nearly $1.5 billion worth of Ethereum (ETH) and Lido Staked Ether (stETH) from Bybit. This incident marked not only the biggest cryptocurrency theft but potentially one of the largest financial heists ever recorded.
Renowned blockchain research firm Elliptic, along with pseudonymous on-chain investigator ZACHXBT and other cybersecurity experts, traced the exploit to the Lazarus Group, a notorious North Korean cybercriminal organization responsible for numerous high-profile attacks on cryptocurrency platforms.
Elliptic‘s investigation revealed that the Lazarus Group allegedly utilized eXch as part of its money-laundering process. While eXch vehemently denied these accusations, it did concede to handling an “insignificant” portion of the stolen funds.
In a surprising turn of events, eXch recently announced its decision to cease operations through a post on the BitcoinTalk forum. The exchange cited intelligence confirming it as the target of an “active transatlantic operation” as the primary reason for its shutdown, scheduled for May 1st.
The company stated, “Despite successfully maintaining our operations through various infrastructure attacks – subsequently confirmed as part of this operation – we’ve chosen not to continue in this increasingly hostile environment. After urgent consultations and a vote by our management team, we’ve decided to cease operations rather than resist these formidable challenges.”
This development marks a significant moment in the ongoing battle against cryptocurrency-related cybercrime and highlights the increasing scrutiny faced by crypto exchanges globally.
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Sources: Elliptic, BitcoinTalk forum