Germany closes 47 crypto exchanges over money laundering concerns

  crypto.news 2 h

German authorities have taken down 47 cryptocurrency exchange services in a 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, according to a BKA press release.

These exchanges enabled transactions without following 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 (BTC) or Ethereum (ETH) 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.

On August 20, German authorities carried out a wide-reaching 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.

You might also like: Russian man faces treason charges over crypto transfers to Ukraine

Germany’s relationship with crypto-crime

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.

The 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.

For nearly a month spanning from June to July, Germany transferred and sold all of this Bitcoin, causing the price of the asset to drop.

You might also like: Miami police arrest crypto scammers behind $243m theft

Source