🌎 German Authorities Shut Down 47 Crypto Exchanges in Major Crackdown

German Authorities Crack Down on Cryptocurrency Exchanges

German authorities have taken down 47 cryptocurrency exchange services in a significant crackdown on illegal money laundering activities. The Federal Criminal Police Office in Germany and the Central Office for Combating Internet Crime led the operation, which targeted platforms allowing users to exchange conventional currencies and cryptocurrencies without verifying their identities.

These exchanges bypassed the “know-your-customer” protocols, a set of rules requiring users to prove their identity before making financial transactions. By avoiding this verification, the exchanges allowed users to trade crypto like Bitcoin or Ethereum quickly and anonymously. According to the BKA, criminals often use such platforms to hide the source of money obtained through illegal activities, such as ransomware attacks or drug sales on the dark net.

Major Operation and Seizures

On August 20, German authorities conducted an extensive anti-money laundering operation, confiscating 13 crypto ATMs and almost $28 million in cash from 35 locations nationwide. The raids, led by financial watchdog BaFin, targeted machines operating without the necessary licenses, posing significant money-laundering risks.

Impact on Cybercrime Infrastructure

The shutdown of these services is part of a broader effort to disrupt the infrastructure supporting cybercrime. Authorities were able to secure user and transaction data from the exchanges, which could be valuable for future investigations. This data might help identify criminals who use these services to launder money.

Previous Actions and Seizures

This crackdown follows previous actions by German law enforcement, such as the 2023 seizure of the ChipMixer platform, which was involved in laundering €90 million worth of cryptocurrencies. Authorities have also targeted other cybercrime networks in recent years, including malware operators.

In June, the BKA started transferring around 50,000 BTC seized from the individuals running the well-known piracy movie site Movie2k.to in 2013, making it quite an eventful summer for Germany and the crypto industry.