Cryptocurrency exchange eXch will cease operations on May 1, following allegations that it was used to launder funds connected to the high-profile Bybit hack. The announcement came via an April 17 statement, citing mounting pressures from authorities and internal agreement among its leadership to exit the market.

Allegations of Money Laundering

Claims emerged that North Korea’s Lazarus Group laundered around $35 million through eXch, part of an estimated $1.4 billion lost in a significant exploit targeting Bybit earlier this year.

eXch’s Shutdown and Claims

The exchange claimed it had become the target of an “active transatlantic operation” aimed at dismantling its infrastructure. Despite initial denials, eXch acknowledged processing a minor portion of the hacked funds but emphasized that these transactions were not significant, insisting it hadn’t knowingly engaged in illegal activity.

The shutdown notice criticized ongoing surveillance efforts, which they claimed made continued operations impractical. In their statement, they expressed dissatisfaction with the regulatory environment, which they deemed hostile.

“Even though we’ve resisted several shutdown attempts, we see no value in remaining operational under constant threat,” eXch stated.

Impact on Crypto Trading Volumes

In the wake of the Bybit hack, trading activities have seen a decline. Crypto trading volumes fell 16.3% in the first quarter of 2025, highlighting the overall weakness in the market. Binance maintained its position with a 40.7% market share, while Bybit experienced a staggering decline of over 52% post-hack. For more insights on the best AI crypto investments, check here.

This unfolding story underscores the continuing challenges and risks associated with cryptocurrency exchanges in 2025.