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German and Dutch authorities, the BKA and FIOD, have shut down the eXch crypto swapper, stealing 34 million Euros, seizing the infrastructure, and now having access to any historical data rendering most coins tainted.

It is still surprising to me how many non-KYC exchanges and swappers host their infrastructure in a country like Germany, which is a country that is known to be highly hostile and aggressive towards crypto as a whole and has led several operations to shut down dozens of different swapping services within the past year.

Furthermore, if you do run a swapping service, the only real solution to hide your infrastructure is to make it accessible only as a hidden service or an eep site, if you favor i2p over tor. Either way, the days of hosting these services via the clearnet are long gone and it seems like many of the service providers still haven't taken note of this. Getting a hidden service going isn't particularly difficult, especially when you look at the additional level of security and privacy you derive from it.

For anyone intending on swapping coins, my recommendation is to use P2P services like RetoSwap (Haveno) and Bisq instead of the swappers. The swappers are much quicker and easier to use, but they have a tendency to log any and all data, which likely remain unsecured. If the feds go after them, you can almost be guaranteed they will get access to that data, which taints any historical and present coins you got from the service. If you absolutely have to use one of those services, access them via Tor and use Monero when swapping. Don't exchange clear coins for other clear coins, otherwise you're placing yourself at risk without the ability to mitigate it in the future.

Official message issued by FIOD and BKA:

> To users of the recently dismantled cryptocurrency exch.ange,
>
> *****This message is issued by the Dutch Fiscal Information and Investigation Service (FIOD) and the Bundeskriminalambt (BKA).
>
> The service has been taken offline as part of our enforcement action.
>
> We are actively investigating individuals involved in money laundering and other illegal activities through this swap service.
>
> Some question actions from law enforcement regarding crypto services. We want to make one thing clear: this action is not an attack on privacy. We respect the right to privacy and recognize its importance in the digital age. However, when services are heavily abused to commit crime, we will act.
>
> We urge everyone involved in illicit activity to cease immediately. The legal consequences can be serious. Our mission is to protect the integrity of the financial system and hold those who exploit it accountable.

> Privacy is not the problem - criminal misuse is.
>
> Sincerely,
>
> FIOD and BKA

Press Releases:

- https://www.bka.de/SharedDocs/Kurzmeldungen/DE/Kurzmeldungen/250509_eXch_abgeschaltet.html
- https://www.fiod.nl/bka-and-fiod-shut-down-cryptocurrency-swap-service-exch-e-34-million-in-cryptocurrency-has-been-seized-during-the-operation/

#exchange #crypto #feds

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