German Authorities Shut Down 47 Crypto Exchanges Over Money Laundering Allegations

• 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.

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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.