German authorities have taken action to close 47 cryptocurrency exchanges accused of facilitating illegal money laundering operations. The operation was coordinated by the Federal Criminal Police Office (BKA) and the Central Office for Combating Internet Crime.
Exchange Shutdown Operation
According to the BKA, these exchanges allowed users to trade traditional and cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) without identity verification. The violation of 'know-your-customer' (KYC) rules enabled anonymous cryptocurrency trading, catching the attention of criminals using such platforms to hide the sources of illegal funds.
Crypto ATMs Confiscation
On August 20, German authorities conducted a large-scale anti-money laundering operation, confiscating 13 crypto ATMs and almost $28 million in cash from 35 locations nationwide. The operation, led by financial watchdog BaFin, targeted ATMs operating without the necessary licenses.
Fighting Cybercrime
The shutdown of these exchanges is part of a broader strategy to destabilize infrastructure supporting cybercrime. During the operation, user and transaction data were seized, which could prove crucial for future investigations. Previously, in 2023, German law enforcement shut down the ChipMixer platform used to launder €90 million worth of cryptocurrencies. In June, the BKA began transferring around 50,000 BTC seized from the operators of the piracy site Movie2k.to in 2013.
These measures aim to strengthen the fight against illegal financial operations and cybercrime in Germany. Authorities continue to monitor and thwart actions by those who use cryptocurrencies to conceal illegally obtained funds.
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