Key Points:
- eXch exchange refutes claims of laundering $35 million from the $1.4 billion Bybit hack, asserting its operations remain unaffected.
- The exchange claims Bybit previously froze some user deposits, damaging its reputation, and then ignored attempts to resolve the issue.
eXch exchange has denied allegations that it laundered funds from the recent $1.4 billion Bybit hack on behalf of North Korea’s Lazarus Group.
The Non-KYC crypto exchange emphasized that its operations remain unaffected by the Bybit hack and asserted that its funds were secure.
eXch Exchange Rejects Allegations of Laundering $1.4 Billion Bybit Hack Funds
In a Feb. 23 post on the Bitcointalk forum, the eXch team rejected the claims, stating that it does not facilitate money laundering for Lazarus or any other entities. Additionally, eXch exchange is committed to donating proceeds from its activities to privacy- and security-focused open-source initiatives within and beyond the crypto space.
“There are no other addresses on the Ethereum blockchain, aside from deposit addresses that interact with this address, that are associated with our exchange,” the exchange stated.
Previously, the accusations surfaced on social media, with blockchain investigator ZachXBT claiming eXch processed $35 million in stolen funds and mistakenly transferred 34 Ether to another exchange’s hot wallet.
The eXch’s post responded to mounting scrutiny over its role in handling stolen assets. It also included an excerpt from eXch’s email exchange with Bybit’s risk team, in which Bybit requested a freeze on the stolen funds.
SlowMist Flags Risky Transactions From eXch
Blockchain security firm SlowMist said eXch’s involvement in multiple security-related incidents and raised concerns about its practices. The firm urged exchanges to strengthen risk controls when dealing with funds originating from eXch exchange. Meanwhile, reports indicate that eXch declined Bybit’s request for cooperation regarding the hacked funds.
According to eXch, Bybit had previously frozen certain user deposits over the past year, damaging the exchange’s reputation, and then ceased communication despite multiple outreach attempts.
The Bybit hack, which occurred on Feb. 21, is now considered the largest crypto theft in history. Attackers reportedly gained access to Bybit’s Ether multisignature cold wallet, leading to the loss of over $1.4 billion in assets.
In response, Bybit launched a recovery initiative, offering a 10% bounty to security researchers and organizations for any successfully reclaimed funds.
Additionally, since the breach, Bybit has secured approximately 446,870 ETH through a combination of loans, whale deposits, and Ethereum purchases to stabilize its operations.
Crypto analytics platform Arkham awarded independent security researcher ZachXBT a bounty of 50,000 ARKM tokens, valued at approximately $34,000, for his efforts in tracing the stolen funds to the Lazarus Group.
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