Shocking Revelation: Crypto Mixer eXch Still Laundering Despite Shutdown!

eXch's Dark Underbelly: From Bybit Heist to Child Abuse Material

Holy smokes, folks! Even though crypto mixer eXch slammed the door on its public operations, it's still up to no good, laundering dirty cash like there's no tomorrow. Analysts are sounding the alarm, pointing fingers at eXch's sneaky mixed-pool model as a major headache for compliance.

Behind the Scenes: eXch's Secretive Operations

Get this: eXch, the notorious mixer that got caught red-handed laundering millions from the Bybit heist, is still pulling the strings from the shadows, even after its supposed shutdown in late April. It's like a bad movie sequel!

TRM Labs Blows the Whistle on eXch's Ongoing Shenanigans

The blockchain sleuths at TRM Labs just dropped a bombshell report, revealing that eXch is still dishing out API access to its shady pals, including other mixers and privacy services. They've spotted some seriously suspicious on-chain activity that screams "ongoing laundering," and it's all tied to eXch's mixed-pool setup.

eXch's Disturbing Ties to Child Abuse Material

Hold onto your hats, because this gets even darker. TRM Labs has linked eXch to some seriously messed-up criminal activity, including a long-term connection with child abuse material threat actors. It's enough to make your stomach turn.

"We've uncovered that eXch has been directly exposed to over $300,000 in CSAM-related funds. And buckle up, because we expect that number to keep climbing as we dig deeper into eXch's dirty laundry."

TRM Labs

The Mixed-Pool Menace: eXch's Laundering Weapon of Choice

eXch's mixed-pool mechanism is like a ninja in the night, slicing and dicing transactions to make them untraceable. TRM Labs spilled the beans, saying that in a mixed pool, "all the incoming and outgoing transactions get thrown into a blender, and there's no way to tell how many people are behind certain addresses. It's like trying to find a needle in a haystack!" This lack of transparency is a nightmare for risk assessments, as dirty money can easily mingle with clean cash, the analysts warn.

eXch's Houdini Act: Shutting Down and Reappearing

On April 17, eXch pulled a fast one, announcing its official shutdown. But wait, there's a twist! Just a few hours later, they yanked the message, leaving no trace of their communication on the topic. And on April 28, like a phoenix rising from the ashes, the platform was back in business, according to TRM Labs.

The Transatlantic Takedown Attempt

eXch's team had previously spilled the beans, saying the project was in the crosshairs of a "transatlantic operation" gunning to shut them down and throw the book at key figures for money laundering and terrorism. Blockchain analytics firms like Elliptic and others had already pegged eXch as a major player in the laundering game.

The Bybit Heist: eXch's Role in the $400,000 ETH Theft

Remember the February 21 heist that drained over 400,000 Ethereum from Bybit's cold wallet? Well, the Lazarus Group, those sneaky devils, used a web of decentralized exchanges, cross-chain bridges, and privacy tools, including eXch, to cover their tracks and hide the stolen assets' origin. It's like a high-stakes game of hide and seek!