eXch Crypto Exchange Denies Money Laundering Allegations Amid Bybit Hack Fallout
Date: February 23, 2024
Location: [Insert Location]
In a strong rebuttal to recent allegations, the crypto exchange eXch has categorically denied any involvement in laundering money for North Korea’s notorious Lazarus Group, following a high-profile hack of Bybit on February 21 that resulted in the theft of over $1.4 billion. The eXch team asserted their position in a statement released on the Bitcointalk forum on February 23, emphasizing that they are "not laundering money for Lazarus/DPRK" and that their operational integrity remains intact.
eXch’s Response to Accusations
In their forum post, eXch addressed rumors circulating on social media that suggested the exchange laundered more than $30 million from the Bybit breach. They described these claims as fear, uncertainty, and doubt (FUD) tactics aimed at discrediting their operations. The exchange acknowledged, however, that an "insignificant portion of funds" from the hack did pass through its platform as part of a singular isolated case.
The exchange detailed how this small amount entered their system via the address 0xf1da173228fcf015f43f3ea15abbb51f0d8f1123, asserting that it was the only transaction related to the Bybit hack processed by eXch. They also announced plans to donate any collected fees from this transaction for the public good.
Allegations from Blockchain Analysts
The response from eXch follows claims made by on-chain investigator ZachXBT. In a Telegram post dated February 22, he alleged that eXch laundered as much as $35 million from the Bybit hack and had inadvertently transferred 34 Ether, worth approximately $96,000, to another exchange’s hot wallet. Other blockchain analysts and security firms, including SlowMist, have echoed these allegations, pointing to suspicious activity involving Ether from wallets linked to the Bybit hack.
Nick Bax, associated with the white hat hacker group the Security Alliance, estimated that eXch may have facilitated around $30 million in transactions for the DPRK within a single day.
Bybit Hack Overview
The February 21 hack of Bybit is considered the largest crypto theft in history, with attackers compromising the exchange’s Ether multisig cold wallet to make the enormous haul. Despite this breach, Bybit has continued to process withdrawals but has reported a significant decline in total assets, losing over $5.3 billion, including the $1.4 billion stolen.
In a concerted effort to mitigate the damage, Bybit reported on February 23 that around $42 million of the stolen funds had been frozen. However, tensions appear to be rising between Bybit and eXch over the latter’s reluctance to assist in this recovery effort.
Tensions Between eXch and Bybit
In their forum communication, the eXch team expressed their frustration with Bybit, suggesting that the exchange had previously frozen funds belonging to its users and had failed to address their concerns in a timely manner. They questioned the motives behind Bybit’s request for assistance, implying that the company had already harmed their reputation.
In a response posted on X, Bybit CEO Ben Zhou expressed a hope that eXch would reconsider its stance and assist in blocking the outflow of the stolen funds, emphasizing an industry-wide responsibility to confront and combat cybercriminal activities.
Conclusion
As the fallout from the Bybit hack unfolds, the accusations against eXch highlight the increasing tensions and complexities at the intersection of the cryptocurrency industry and cybersecurity. The situation continues to develop, and stakeholders in the crypto community are closely monitoring the responses and actions from both exchanges as they navigate this challenging scenario.
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