Shady crypto mixing protocol eXch is merging with an offshore entity and restructuring to evade scrutiny

Centralized crypto mixing protocol eXch revealed in an update on Bitcoin Talk that it plans to relocate its operations and leave its current structure in Belize

Centralized crypto mixing protocol eXch is planning to undergo a major restructuring and relocation as regulatory scrutiny mounts over its role in laundering millions stolen from the Bybit crypto exchange.

In an email seen by Blockware Impact and posted on Bitcoin Talk on Wednesday, eXch said it would be changing its structure and moving from Belize to another offshore location. It will also have “new shareholders and new members on the management board.”

This move, the service said, would help “reduce risks for our founding team in the U.S. and create an opportunity for eXch to continue its activity without being forced to give up our values or compromise on our principles.”

EXch added that it’s “aware that there is an ongoing operation” targeting its service by “some law enforcement agencies” with the goal of adding the protocol to the OFAC sanctions list and seizing the protocol’s infrastructure.

“Since it’s primarily coming from U.S.-based agencies, we will update our ToS to inform our users in the U.S. not to use our service and warn them about the risks of being prosecuted in their country for using a service like ours.”

In its attempts to go off the radar, eXch said it’s also planning to delist by July-August the two largest stablecoins by market capitalization: Tether (USDT) and USD Coin (USDC) due to the risk of being blacklisted. Instead, the disgraced protocol will rely on DAI (DAI), an algorithmic stablecoin issued by MakerDAO, an Ethereum-based protocol.

The mixing service said it will also now only support dynamic addresses to avoid complications. It’s also changing its Bitcoin aggregation address to make it harder to link transactions to eXch.

EXch is a primary target in the ongoing efforts to help Bybit recover at least $1.5 billion stolen by North Korea-affiliated hackers in February.

According to Bybit’s own data, eXch laundered over $94 million in stolen funds and ignored multiple requests to cut off the bad actors.