Crypto exchange eXch has vehemently denied allegations that it helped to launder money from the most recent Bybit attack, which saw $1.4 billion in crypto assets stolen on February 21. Declaring that it had no links to North Korea’s Lazarus Group and was not involved in money laundering, the trade answered the accusations in a February 23 message on the Bitcointalk forum.
The comment underlined that the attack had no effect on eXch’s operations and that every dollar on the site was safe. It did, however, note processing a small amount of the pilfered money and characterize it as an isolated transaction. The exchange explained that any fees collected will be donated for public benefit and that the money in issue is linked to its address, 0xf1da173228fcf015f43f3ea15.
Blockchain researchers have closely examined eXch’s participation, despite its refutation. According to on-chain analyst ZachXBT, eXch handled $35 million of the pilfered funds and unintentionally delivered 34 Ether (ETH), valued at about $96,000, to a hot wallet connected to another exchange. Echoing these claims, security company SlowMist and other blockchain experts note that eXch handled large volumes of Ether connected to the Bybit breach.
According to whitehat hacker organization Security Alliance member Nick Bax, eXch handled about $30 million for the Lazarus organization. SlowMist further mentioned that eXch has transferred some of the pilfered Ether to other coins.
Bybit has been aggressively trying to retrieve pilfers, effectively freezing over $42 million with team efforts. But conflict between Bybit and eXch has emerged; the latter apparently opposes initiatives to halt further funding. In a post on Bitcointalk, eXch revealed an email discussion between Bybit’s risk team and her, whereby the latter asked for help in stopping pilfers. eXch objected, citing past complaints alleging Bybit seized funds from eXch consumers without clear reason.
“In light of these events, we would appreciate a clear explanation as to why we should consider helping an organization that has actually undermined our reputation,” eXch said in its reply to Bybit.
Emphasizing that fighting hackers should be a shared industry effort rather than a conflict between individual exchanges, CEO Ben Zhou expressed hope that eXch would modify its position.
The incident underlines continuous security issues in the cryptocurrency sector, as the inquiry reveals. Under increasing pressure from security experts and the wider crypto community, eXch keeps the handling of cash connected to the Bybit breach under close examination.
