eXch Shuts Down After Ties to Lazarus Group Allegations

Privacy-focused crypto platform eXch has announced it will officially shut down operations on May 1, 2025. The news comes amidst growing allegations that the platform was used by North Korea’s Lazarus Group, especially after the group’s recent attack on Bybit.

eXch made the shutdown announcement in a public forum post. The team said the project began as an experiment “aimed at demonstrating to the community that alternatives can exist during times when there were none.”

However, intelligence sources have linked eXch to illegal transactions. Some reports claim Lazarus used the platform to move stolen funds after breaching Bybit’s security. In response, eXch initially denied any involvement, claiming it only processed “an insignificant amount of funds.”

But in the announcement, the team admitted they had received confirmation from “friends we have even in the state intelligence sector” that the platform was the target of an international operation. They are now being investigated for “money laundering and terrorism.”

eXch claims it has been misinterpreted

eXch explained it has no intention of continuing in a hostile environment. “Starting from the date of the merger with a new management team this month… the majority of us voted to cease and retreat instead of going against strong winds.”

“Even though we have been able to operate despite some failed attempts to shut down our infrastructure (attempts that have also been confirmed to be part of this operation), we don’t see any point in operating in a hostile environment where we are the target of SIGINT [Signals Intelligence] simply because some people misinterpret our goals,” the team added.

Interestingly, eXch has long denied being a “mixer,” a term that describes services that hide the origin of crypto funds. Yet critics have argued that its instant exchange features made it easier for criminals to carry out large-scale transactions.

Lazarus remains a huge concern

Lazarus, a North Korea-backed cybercriminal group, has carried out several sophisticated attacks on crypto platforms, stealing billions of dollars over the years. The group reportedly carried out the Bybit hack, which experts view as the greatest crypto hack in history.

Groups like Lazarus often rely on multiple strategies to hide their trails, including using crypto mixers. As a result, regulators globally have mounted pressure on privacy tools.

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