eXch Removes USDT, USDC to Prevent U.S. Sanctions Risks
The infamous crypto tumbler protocol eXch announced it would remove USDT and USDC as part of reorganization to prevent enhanced regulatory attention from U.S. regulators for facilitating the washing of tens of millions of hacked funds in the Bybit exchange exploit.
Restructuring to Prevent Seizure and Sanctions
In a post on Bitcoin Talk, eXch announced it will disassemble its Belize infrastructure and merge with an unnamed offshore entity. The protocol claimed this action will “mitigate risks for our founding team” and allow operations to continue without seizure by law enforcement.
The announcement acknowledged ongoing operations by U.S.-based agencies to blacklist eXch via OFAC sanctions and seize its infrastructure.
Warning to U.S. Users, Switch to DAI
eXch announced that its updated Terms of Service will warn U.S. users against the use of the service due to prosecution threats. It further announced plans to delist USDT and USDC by July-August owing to blacklist concerns and instead will offer support for DAI, MakerDAO’s algorithmic decentralized stablecoin.
The service will also change to dynamic addresses and modify its Bitcoin aggregating system to cover up transaction traces.
Overlooking Bybit, Abetting North Korea?
eXch was accused of not assisting in ending the laundering of funds from the $1.5 billion hack on Bybit, which North Korea-linked entities allegedly carried out. Bybit explained that eXch facilitated over $94 million in money laundering despite making several requests for it to stop the hackers.
US law enforcement agencies are reportedly collecting evidence to declare eXch a sanctioned entity, increasing the crackdown on illicit crypto mixers associated with state-sponsored cyber attackers.
