The post Crypto mixer eXch still facilitates illicit transactions despite official closure appeared on BitcoinEthereumNews.com.

Despite its public shutdown, crypto mixer eXch appears to be still involved in laundering operations, with analysts identifying its mixed-pool model as a key risk for compliance. Crypto mixing service eXch, which gained a reputation for its involvement in laundering millions in stolen funds from Bybit, seems to remain active behind the scenes despite its public shutdown in late April. Analysts at a blockchain forensic firm TRM Labs explained in a recent report that eXch continues to provide application programming interface access to its business partners, including mixers and privacy services. TRM has observed on-chain activity that suggests ongoing laundering behaviors, especially tied to its mixed-pool infrastructure. Example flow of Bybit exploit funds moving through eXch and bridging back and forth between ETH and BTC | Source: TRM Labs The analysts have linked eXch to significant criminal activity, including a long-term association with child abuse material threat actors. “We have identified that eXch has been directly exposed to more than $300,000 in CSAM-related funds. However, we expect this figure to increase as we continue our attribution on eXch.” TRM Labs The exchange’s mixed-pool mechanism, designed to fragment transactions, has raised red flags for investigators. TRM Labs explained that in a mixed pool “all received and sent transactions are mixed together and there is no way to discover how many people are behind certain addresses and traceability is extremely difficult.” This lack of transparency complicates risk assessments, as illicit deposits may be linked to legitimate withdrawals, the analysts added. Crypto mixer eXch announced its official shutdown on April 17. However, the protocol removed the message a few hours later — leaving “no public record of its communication on this topic,” and on April 28, the platform resumed operations, TRM Labs says. As eXch’s team earlier said, the project had become the…

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Filed under: News - @ May 5, 2025 9:28 am