Lawrence Damilola
Germany’s Federal Criminal Police Office (BKA) and the Attorney General’s Office in Frankfurt have shut down 47 cryptocurrency exchanges tied to money laundering and other criminal activities.
According to a statement from the BKA on Thursday, the platforms violated “Know Your Customer” (KYC) regulations by allowing users to trade without undergoing necessary identity verification, enabling criminals to operate anonymously.
The BKA named exchanges such as Xchange.cash, 60cek.org, and Baksman.com among the platforms shut down. Some of these exchanges had been operational since 2012, while others launched as recently as last year. The authorities seized customer and transaction data from these platforms during the investigation.
Anonymous Exchanges Aided Criminal Activities
The BKA reported that the platforms were widely used by criminals, including ransomware operators, darknet dealers, and botnet users to launder illegal profits. By not following KYC rules, the exchanges allowed anonymous transactions, making it easier for criminals to convert digital assets into regular currency without being tracked.
In its statement, the BKA said, “Services that allow anonymous financial transactions are a major part of the criminal value chain.” The exchanges had promised their users complete anonymity and falsely claimed they did not store customer data. This allowed cybercriminals to conceal their identities and illegal earnings.
The shutdown of these platforms is part of “Operation Final Exchange,” a coordinated action by German authorities. Visitors to the seized websites are now redirected to a warning page that reads, “We have found their servers and seized them. We now have your data – transactions, registration details, and IP addresses.”
The operators of the exchanges are facing charges of money laundering and running illegal trading platforms. According to German law, they could face lengthy prison sentences if convicted. German authorities are analyzing the seized data, and the investigation may result in further arrests and legal actions.
Earlier this year, the BKA seized nearly 50,000 Bitcoin, worth $3.15 billion, from the operators of the piracy website Movie2k.to. The Bitcoin was sold by the German government in July. The latest operation continues Germany’s efforts to crack down on illegal activities in the cryptocurrency sector.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
