The non-KYC centralized exchange eXch has strongly denied allegations of laundering stolen funds from the historic Bybit hack on behalf of the notorious Lazarus Group.

The accusations, which have been widely discussed across social media and blockchain investigation forums, claim that eXch processed millions of dollars in stolen funds tied to the North Korean hacking collective.

In response to these accusations, eXch issued an official statement on February 23, 2025. The exchange has labeled these claims as baseless and part of a targeted “FUD attack.”

“We are not laundering money for Lazarus/DPRK,” said eXch.

Bybit Suffers Loss Of $1.5 billion In Crypto Hack

The Bybit hack has now been confirmed as the largest cryptocurrency theft in history, with attackers stealing over $1.4 billion after compromising the exchange’s Ethereum multisig cold wallet.

The scale of this incident has sent shockwaves through the industry, raising concerns about security vulnerabilities and risk management practices at major exchanges.

Binance founder Changpeng Zhao weighed in on the situation shortly after news of the hack broke.

In a post on X (formerly Twitter) on February 21, 2025, Zhao suggested temporarily halting all withdrawals as a precautionary measure to ensure system integrity.

He commented,

“Not an easy situation to deal with. Might suggest to halt all withdrawals for a bit as a standard security precaution. Will provide any assistance if needed. Good luck!”

Allegations Of Laundering $30 Million Linked To Lazarus Group

🚨eXch Refuses to Cooperate After Being Linked to North Korean Hackers
👉 @Bybit_Official request for assistance was rejected by eXch, the coin mixer used by North Korean hackers.
👉 @SlowMist_Team warns that eXch has been involved in multiple security breaches, even exposing… pic.twitter.com/Pn9pcGLhdx
— Crypto luffy @CryptoLuffy007 February 23, 2025

The controversy began when prominent blockchain investigator ZachXBT alleged in a Telegram post that eXch had processed $35 million worth of stolen funds from the Bybit hack. He also claimed that the exchange mistakenly sent 34 ETH (approximately $96,000) to another exchange’s hot wallet.

Other blockchain analysts and security firm SlowMist corroborated these allegations. SlowMist stated that eXch received Ethereum (ETH) from wallets associated with the Bybit exploit.

Nick Bax, a member of the Security Alliance white hat hacker group, further estimated that eXch handled approximately $30 million in funds linked to North Korea on the same day. Furthermore, a portion of the stolen ETH was converted into other crypto on eXch’s platform.

Key Takeaways

• The Bybit hack has now been confirmed as the largest cryptocurrency theft in history, with attackers stealing over $1.4 billion after compromising the exchange’s Ethereum multisig cold wallet.
• While eXch has denied any wrongdoing, its acknowledgment that some stolen funds entered its platform highlights the challenges non-KYC exchanges face in preventing illicit transactions.