Non-KYC crypto exchange eXch has denied claims of laundering funds from the $1.4 billion Bybit hack. Blockchain analysts have linked some stolen assets to eXch. The exchange acknowledged that it processed a small amount of the hacked funds but called the case “isolated.”
On February 21, 2025, Bybit experienced a major theft. Hackers stole over $1.4 billion from its Ethereum cold wallet. Investigators believe the Lazarus Group, a North Korean hacking group, was responsible for the attack.
Following the hack, eXch saw a significant increase in ETH reserves. Reports indicated that over 20,000 ETH moved through eXch within 24 hours, far exceeding its normal daily volume of 800 ETH.
Nick Bax from the Security Alliance claimed that eXch processed $30 million in hacked funds on the day of the attack. ZachXBT stated that eXch laundered $35 million and mistakenly sent 34 ETH, worth $96,000, to another exchange’s hot wallet.
On February 23, eXch responded to the allegations on Bitcointalk. The exchange labeled the claims as “FUD” and stated it does not launder funds for Lazarus or North Korea. eXch admitted that a small portion of stolen funds entered its wallet but insisted it was the only transaction and promised to donate any fees to open-source privacy projects.
Bybit has successfully frozen over $42 million in stolen assets through collaboration with other parties. However, eXch has resisted Bybit’s attempts to block flagged wallet addresses. eXch accused Bybit of harming its reputation by freezing users’ funds in previous transactions.
