- Main seizure by German police amid Bybit-related crypto laundering.
- No AML controls led to shutdown.
- Large seizure stems from AML non-compliance.
German authorities, including the BKA and Frankfurt Prosecutor’s Office, seized $38 million on May 9, 2025, linked to money laundering activities through the eXch exchange by hackers from the Bybit theft.
German authorities’ seizure highlights significant anti-money laundering enforcement, impacting practices of exchanges without KYC controls. The move reflects ongoing efforts to curb crypto-related financial crimes and enforce compliance.
German authorities confiscated $38 million in cryptocurrency linked to the Bybit hack. Hackers used eXch exchange to launder part of the stolen funds. eXch was shut down by authorities for not implementing anti-money laundering measures.” – German Federal Criminal Police Office (BKA) & Frankfurt Prosecutors, Official statement
Hackers exploited eXch for laundering stolen Bybit assets, leading to the seizure of $38 million, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Dash (DASH). German authorities continue to investigate the exchange’s role.
The immediate market impact could be seen with strengthened scrutiny on crypto exchanges for AML compliance. Global exchanges may face pressure to implement stringent controls, reducing transactional anonymity.
The seizure underscores a pivotal move by law enforcement to enforce AML regulations across Europe. Such actions may spur reforms in compliance measures, prompting exchanges to enhance transparency and accountability mechanisms.
Insights from this case suggest heightened vigilance from regulatory bodies on crypto transactions, potentially leading to stiffer rules. Exchanges might prioritize integrating robust AML procedures to avoid similar seizures and ensure long-term viability.
