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Massive Crypto Swaping Bust: BKA Seizes €34M in Landmark Takedown

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A massive crackdown on the crypto swapping service eXch culminated on April 30, 2025, when its entire server infrastructure was seized and digital assets—including Ether, Litecoin and Dash—worth approximately €34 million were frozen. Investigators recovered over eight terabytes of transaction logs and user data, exposing how the platform had facilitated anonymous swaps of illicit Bitcoin and other cryptocurrencies since 2014. Law enforcement then confirmed that the operation, which also involved the Dutch FIOD, had delivered critical leads for dismantling related money-laundering networks.

During the takedown, authorities secured over eight terabytes of platform data alongside digital assets in the form of Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Dash (DASH). This marks one of the BKA’s largest crypto seizure operations to date, underscoring the rapid escalation of law enforcement capabilities against industrial-scale money laundering platforms.

Launched in 2014, the crypto swapping service “eXch” offered users seamless exchanges between cryptocurrencies—known in the sector as “crypto swapping”—without any requirement for identity verification or data retention. The platform was advertised on both the clearnet and darknet, explicitly promoting anonymity and evasion of anti-money laundering controls.

Investigators estimate that since its inception, eXch facilitated approximately $1.9 billion in digital asset transfers, a significant portion of which derived from illicit activities including the February 21 2025 Lazarus Group hack of the Bybit exchange, where $1.5 billion worth of Ether was stolen.

Legal framework and traceable statutes

German authorities pursued charges of commercial money laundering under Section 261 of the German Criminal Code (Strafgesetzbuch, StGB), which prohibits the processing of assets derived from criminal offences. The operation also targeted violations of Section 15 of the Money Laundering Act (Geldwäschegesetz, GwG), mandating customer due diligence for financial service providers.

Under the European Union’s Fifth Anti-Money Laundering Directive (5AMLD), member states are required to implement robust measures for cryptocurrency platforms, including customer identification, transaction monitoring, and suspicious activity reporting. eXch’s deliberate circumvention of these obligations rendered it a primary target once evidence of large-scale laundering emerged.

International cooperation bolsters cybercrime investigations

The takedown of eXch exemplifies the critical role of cross-border collaboration in combating financial crime. The BKA worked in tandem with the Dutch FIOD, leveraging shared intelligence to identify server locations, user patterns, and transactional footprints. Insights gained from Dutch-led tracing of Bitcoin flows directly informed the timing and scope of Germany’s raid. Security Affairs

Carsten Meywirth, Director of the BKA’s Cybercrime Division, stated:

“Once again, we have secured a record-breaking sum of millions in incriminated cryptocurrencies and shut down a digital money laundering platform. The scale of the incident impressively demonstrates that cybercrimes are being committed on an industrial scale. We will continue to increase the risk of loss for the underground economy with all the means at our disposal. Our goal remains to hold those responsible accountable.”

Technical dismantling of the underground economy

Beyond seizing digital assets, investigators confiscated eXch’s entire database, capturing user interaction logs, wallet addresses, and transaction records. Forensic analysis of the eight terabytes of data is expected to reveal ancillary networks of cybercriminals, money mules, and hacker groups that used the platform to launder proceeds from ransomware attacks, phishing scams, and exchange hacks.

The evidence harvested will fuel subsequent investigations into related dark web services and forums. Authorities anticipate that deconstructing eXch’s infrastructure will facilitate the identification and prosecution of additional operators across Europe and beyond.

Broader successes in the fight against cyber-enabled money laundering

The eXch operation builds on a series of high-impact cybercrime interventions in recent years. In 2024, “Operation Endgame,” led by the BKA in collaboration with multiple international partners, neutralized several prominent malware families, issued ten international arrest warrants, and resulted in four provisional arrests.

Also in 2024, German law enforcement dismantled 47 domestic digital currency exchange services used for illicit purposes, further curbing the underground economy’s liquidity. High-profile seizures included ChipMixer’s infrastructure, netting €90 million in confiscated assets, and the shutdown of Dstat.CC under Operation PowerOff.

Implications for regulated entities and compliance officers

Financial institutions and compliance teams must note the intensifying scrutiny of unmapped crypto platforms. Regulators across the EU have signaled stricter enforcement of 5AMLD and upcoming Sixth Anti-Money Laundering Directive (6AMLD) provisions, which will expand definitions of money laundering offences and increase penalties.

Firms offering custodial or non-custodial crypto services must implement robust Know Your Customer (KYC) protocols, enhanced due diligence for high-risk customers, and continuous transaction monitoring. The eXch case highlights the reputational and legal risks of insufficient controls.

Conclusion: shoring up defences against digital money laundering

The dismantling of the crypto swapping service “eXch” underscores the industrial scale at which cybercriminals launder illicit gains. By seizing €34 million in cryptocurrencies and securing critical infrastructure, authorities have dealt a significant blow to the underground economy. Continued collaboration between agencies, rigorous enforcement of AML legislation, and vigilant compliance practices will be essential to deter future threats and protect the financial system’s integrity.