Bybit Alert: Defunct Crypto Mixer eXch Still Facilitating Illicit Transactions

Despite its announced shutdown, the cryptocurrency mixer eXch remains operational for money laundering, processing over $300,000 in illicit funds since its supposed closure on April 30, 2025, as revealed by TRM Labs.

Crypto Mixer eXch Still Laundering Funds Post-Shutdown, TRM Labs Warns

Despite its official shutdown announcement, the notorious crypto mixer eXch continues to operate as a conduit for illicit funds, according to a new report from blockchain analytics firm TRM Labs. The platform removed all public-facing infrastructure on April 30, 2025, but backend API functionality remains active, enabling persistent money laundering activity.

TRM’s investigation traced over $300,000 in child sexual abuse material-related funds through eXch’s mixed-pool system. The mixer has also been linked to laundering proceeds from the February 21 Bybit exchange hack. This development underscores the challenges of completely dismantling crypto laundering operations, even after apparent shutdowns.

Bybit’s 500x Leverage on US Stocks and Gold: Innovation or Excessive Risk?

Bybit is pushing boundaries with plans to offer 500x leverage on U.S. stocks and commodities like gold by mid-2025. The move comes as part of a broader expansion into traditional finance, positioning the exchange against hybrid trading platforms like eToro and Kraken.

CEO Ben Zhou confirmed the rollout during a May 3 livestream, highlighting blue-chip stocks including Apple and MicroStrategy. The announcement follows Bybit’s $1.5 billion security overhaul after a major hack, raising questions about risk management in high-leverage environments.

AI-powered tools will accompany the new offerings, targeting sophisticated traders willing to gamble with extreme margin. While the feature could attract capital flows, regulators may scrutinize whether 500x leverage crosses from innovation into recklessness.