PSA ⚠️ Don't send non-Monero coins from eXch to FixedFloat ⚠️ Another reason to use Monero only : Monero | Torhoo darknet markets

Hey Dread

Browsing the monero subforum I noticed a post [/post/79b2c51ae7ae5b8621c2] by user who claim he didn't receive Monero from eXch after sending them Bitcoin. I immediately remembered a blog post from FixedFloat who in essentials banned eXch interactions with their addresses and thought about the users problem perhaps eXch are having more issues with accounts.

The blog post is from February 2025 but it hadn't been discussed on Dread I checked. Worth knowing the information and if you ever needed yet another reason to use Monero here's one.

eXch has been under pressure for laundering millions from Bybit hack and others incidents. FixedFloat has been pushing researchers and relevant parties such as blockchain analysts to blacklist eXch funds. Their blog post is clearly biased and care more on their business bottom line than the freedom and privacy of the cryptocurrency ecosystem.

Blog quote for those who don't want to visit FixedFloats website

FixedFloat AML Terms of Service Update

Dear users, due to recent events, we inform you that all funds that have a direct connection to the centralized exchanger eXch are now considered criminal. All orders paid for with funds received through this exchanger will be suspended for additional verification of sources of funds and information about exchanges. We strongly recommend refraining from sending funds received through eXch to the addresses of our service.

In February 2024, an attacker exploited a vulnerability in our security structure and managed to steal $26.1 million. The reaction of the crypto community was unambiguous: numerous analytical services, blockchain experts, crypto services and other organizations immediately joined the investigation of the incident, actively assisted in tracking the movement of funds, blocking addresses and preventing further transactions with the stolen assets. But the attacker quickly found a way to bypass the measures taken. He used the centralized exchange eXch. When we asked for help in blocking the stolen funds, eXch took no action.

A year after the FixedFloat hack, on February 21, 2025, the largest hack in the history of the crypto community occurred on the ByBit exchange for $1.5 billion in ETH. The reaction from the crypto community was once again unambiguous: all efforts were directed towards helping track and freeze the stolen funds. It didn’t take long before news emerged from renowned on-chain analyst ZachXBT that the Lazarus Group, a hacker group sponsored by the DPRK, was behind the Bybit hack. It wasn’t difficult for analysts to track the movement of funds, as a result of which it was discovered that the hackers used the eXch service to launder the stolen funds.

When ByBit asked for assistance in stopping the stolen funds, the eXch team refused, stating that they had previously faced "direct attacks" on their service and reputation from ByBit. However, we have not previously resorted to public criticism, but eXch was in no hurry to cooperate and provide assistance to us either. It seems that eXch is simply looking for excuses to refuse to cooperate with the affected services every time in order to continue to assist hackers in laundering the stolen funds.

The crypto community has repeatedly expressed its dissatisfaction with eXch's policy. Thus, the founder of the analytical project SlowMist Yu Jian condemned the service's position, emphasizing that the exchanger is engaged in money laundering. Also, analysts and leading cryptocurrency exchanges have previously raised the issue of eXch's insufficient activity in cooperation with other platforms to combat the laundering of stolen funds.

The centralized exchanger eXch actually provides the ability to exchange any funds, including stolen ones, even if the addresses are already marked as suspicious in explorers. The lack of clear measures to control illegal transactions is perceived as an admission of complicity in the process of money laundering.

In connection with the position of eXch, we are forced to take the following measures. Now all funds received from the eXch service are considered criminal. In accordance with the Terms of Use of FixedFloat 6.4. in case of detection of such funds, we reserve the right to suspend the provision of services and freeze the funds received. This rule comes into force on March 3, 2025.

Earlier, since 2022, Tornado Cash was subject to US sanctions due to accusations of using Tornado Cash by the North Korean hacker group Lazarus Group to launder stolen cryptocurrency. In early 2025, the sanctions were lifted. The main difference between Tornado Cash and eXch is that Tornado Cash is a decentralized contract, which really cannot help stop funds. eXch, like FixedFloat, is a centralized exchanger, and therefore they have the ability to provide assistance if they want. We understand that information about incidents that occur does not always reach all services promptly, and some of them may not have time to respond to reports of stolen funds passing through their platforms. However, eXch has openly and directly stated its unwillingness to help the hacked exchange, which indicates a willingness to continue laundering stolen funds. This position seriously discredits this service in the eyes of the crypto community.

Delusional of them to say at the end eXch is discredited in the eyes of the crypto community. In my eyes and experience eXch has always come through for big and small transactions.

In the light of their service and the original user poster about missing funds, my post is made to aware eXch users about potential issues and verifications for those who swap Monero to other coins and then into CEXs. Issue isn't unique to eXch at all in reality. The pitfall of exchangers who don't go for licenses or official representation is the coins you receive which are non-Monero coins could end up being flagged. A skilled exchanger would guarantee outgoing white coins but only for so long as analytics catch up and accounts made with false documents (often use for liquidity) get flagged and reported to authorities.

Be careful with your cashout processes and use Monero as much as possible.

Would be beneficial to hear also directly from eXch commenting FFs blog as I know on his Q&A page he lists accepted exchanges Binance, Coinbase, Gate.io, HTX, Kraken, Gemini, OKX, Kucoin, Poloniex and says this list is being reviewed daily.