German Government Seizes 47 Crypto Exchanges for ‘Illegal Activity’

• German authorities have taken action against 47 crypto exchange services in the country.
• These seized crypto exchanges were accused of violating anti-money laundering rules.
• These services also allowed crypto transactions to go through without checking users' proof of identity or requiring a registration.

Germany's central criminal investigation agency, The Bundeskriminalamt (BKA), revealed a crackdown on 47 crypto exchangesas part of a broader strategy to combat cybercrime.

Let's unpack what the latest announcement means for illegal crypto exchanges in Germany.

Money Laundering and Failure To Carry Out KYC

Per the September 19 press release, the Frankfurt am Main Public Prosecutor's Office and the Federal Criminal Police Office (BKA) targeted crypto exchanges that enable users to anonymously exchange crypto for fiat currencies.

The action was imposed for platforms thatcircumvent money laundering rulesby failing to implement the know-your-customer (KYC) process.

The agency accused these illegal crypto exchanges of knowingly disguising the origin of illegally obtained funds on a large scale.

The Central Office for Combating Internet Crime (ZIT) and BKA retrieved extensive transaction and user data from the seized crypto exchanges. Some users were also involved in darknet trading, ransomware groups, and botnet operations.

We have found their servers and seized them - development servers, production servers, and backup servers. We have their data - and therefore we have your data. Transactions, registration data, IP addresses.German governmentPlans for Cybercrime Prevention

German authorities just shut down 47 crypto exchanges and are now allegedly turning their attention to these exchanges' potentially criminal users.

However, the German government stated that it won't be able to conduct a widespread prosecution as many cybercriminals reside abroad.

According to Operation Final Exchanges, TipTrone.com, active since 2024, was the most recently operational among these seized exchanges. Both Xchange.cash and 60cek.org hadthe highest user and transaction count among those illegal services.

What We Learned

The crackdown is part of a broader effort of the German government to battle cybercriminals. As a result, it could enhance fraud prevention and safeguard the integrity of the crypto space in Germany.

References

• BKA press release (bka.de)
• Operation Final Exchange (finalexchange.de/en)

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