Money laundering through Exch.cx
in recent hacks
in recent hacks
In recent months, cryptocurrency platform Exch.cx has been in the spotlight due to a series of major hacks and asset leaks related to its use. Attackers have been actively using the platform to withdraw stolen funds into the untraceable cryptocurrency Monero (XMR), making it virtually impossible to trace them further. Recent high-profile incidents related to Exch.cx include the hacking of the Lykke service, or the laundering of assets by the DRPK group, as well as many other cases involving so-called "drainers".
One of the main reasons for Exch.cx's popularity among criminals is its low level of control and disregard for anti-money laundering (AML) measures. In all of these cases, assets sent to this platform were already labelled "Stolen funds", which requires them to be blocked immediately until the circumstances are clarified. However, Exch.cx does not fulfil these requirements and continues to process such transactions without any obstacles, which raises serious suspicions of its involvement in money laundering.
As an example, marked transactions of the DRPK group are freely entering the exchange and, as it turns out later, are not blocked there, although they should be immediately frozen:
One of the main reasons for Exch.cx's popularity among criminals is its low level of control and disregard for anti-money laundering (AML) measures. In all of these cases, assets sent to this platform were already labelled "Stolen funds", which requires them to be blocked immediately until the circumstances are clarified. However, Exch.cx does not fulfil these requirements and continues to process such transactions without any obstacles, which raises serious suspicions of its involvement in money laundering.
As an example, marked transactions of the DRPK group are freely entering the exchange and, as it turns out later, are not blocked there, although they should be immediately frozen:
- 0x2d1cba32c746e0e6288e6c2fb8210a3dd15e65360adf3972abaca9ea749e7f37
- 0x902e908ef5e7ed47297b6423d96eebc5ec1ec12f486f1be2b434a3d341a240f0
- 0x20f2a981629f86fdb166c01a227b32e6aba3a677218544ee303b11d9be0f658b
In this case, the Cristal intelligence analyser is presented
Another example of an exchange blatantly disregarding AML policies and leaking marked cryptocurrency assets in the Lykke exchange hack case, transaction hashes:
- 79b560741abe2a4683b5698cf9defbcf0e6ce134b8c2b2041864c2009907c8cf
- 9d65362ff41e96e08670a80adf26806fe11a61ed69ef41c0b2e095bac04651b4
- cc83f5311b3f341371b80d1c399d40504a56575b1821f5ae37b8c593699b0f8d
In this case, the Reactor chainalysis analyser is presented
This fact indicates that Exch.cx most likely does not use any tools to check transactions for AML risks.
The platform formally responds to law enforcement requests, but the information provided is not informative and does not contain data on clients making suspicious transactions or technical information. This behaviour of the platform significantly hampers investigations and identification of criminals, which only encourages further use of Exch.cx for illegal transactions.
This case is not an isolated one in the cryptocurrency world. Many similar platforms provide criminals with the opportunity to safely transfer and launder stolen assets while evading legal liability and regulatory compliance. The lack of strict AML policies and inaction on Stolen funds only reinforces these negative trends, creating a safe haven for illicit financial transactions.
With the growing focus on security and regulation of cryptocurrencies, the Exch.cx cases emphasise the need for tighter controls and stronger anti-money laundering measures. Without the active participation of all market players in regulatory compliance and co-operation with law enforcement, cryptocurrency platforms will continue to be an attractive target for attackers and criminals.
The platform formally responds to law enforcement requests, but the information provided is not informative and does not contain data on clients making suspicious transactions or technical information. This behaviour of the platform significantly hampers investigations and identification of criminals, which only encourages further use of Exch.cx for illegal transactions.
This case is not an isolated one in the cryptocurrency world. Many similar platforms provide criminals with the opportunity to safely transfer and launder stolen assets while evading legal liability and regulatory compliance. The lack of strict AML policies and inaction on Stolen funds only reinforces these negative trends, creating a safe haven for illicit financial transactions.
With the growing focus on security and regulation of cryptocurrencies, the Exch.cx cases emphasise the need for tighter controls and stronger anti-money laundering measures. Without the active participation of all market players in regulatory compliance and co-operation with law enforcement, cryptocurrency platforms will continue to be an attractive target for attackers and criminals.
