- German authorities shut down 47 crypto exchanges linked to money laundering and failure to meet KYC requirements.
- Customer and transaction data from the closed exchanges were seized during the investigation by German law enforcement.
- German authorities are focusing on dismantling the infrastructure behind illegal crypto activities, despite challenges in prosecuting foreign operators.
The German Attorney General’s Office in Frankfurt, along with the Federal Criminal Police Office (BKA), has successfully shut down 47 crypto exchanges. The platforms are suspected of engaging in illegal operations such as money laundering, according to a BKA press release issued on Thursday.
The exchanges were found to have failed to complete their legal obligations to conduct identity and background checks such as Know Your Customer (KYC) requirements. Among the closed exchanges are Xchange.cash, 60cek.org, and Baksman.com, as well as other smaller exchanges.
German Investigation and Seizures
During the investigation, German authorities managed to seize customer and transaction data linked to the exchanges. However, officials noted that prosecuting individuals directly involved in the criminal activities may prove difficult.
This is because many operators are based in foreign jurisdictions where such activities are tolerated or supported. Despite this, the authorities emphasized their focus on dismantling the infrastructure that has enabled these illegal operations to continue.
Broader Context of the Crackdown
The BKA has been actively pursuing crypto-related criminal activity. Earlier this year, the agency seized 49,857 Bitcoin (BTC), valued at $2.1 billion at the time, from the operators of the privacy website Movie2k.to. This platform was shut down in 2013 for copyright violations. In July, the BKA sold the seized Bitcoin, which caused notable turmoil in the cryptocurrency markets due to the sudden influx of Bitcoin being sold. Additionally, repayments by the defunct Bitcoin exchange Mt. Gox around the same time added to the market disruption.
The shutdown of these exchanges marks another significant step in Germany’s fight against crypto-related crime. Authorities aim to weaken global networks that facilitate money laundering and other illicit operations using cryptocurrencies. They are targeting the infrastructure behind these activities.
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
