German authorities have closed 47 cryptocurrency exchanges, accusing them of supporting an ‘underground economy’ and using them to launder money obtained through criminal means.
Exchanges Shutdown
Germany has shut down 47 cryptocurrency exchanges, accusing them of aiding cybercriminals. In a statement on September 19, the federal criminal police, Frankfurt's main prosecutor's office, and the office for combatting cybercrime claimed that the exchanges were deliberately concealing the origins of illegal funds.
Authorities’ Allegations
Authorities allege that the users of these exchanges include ransomware operators, botnet operators, and black market traders who use the services to convert illicit funds into regular currency. The websites of the seized exchanges now display a warning from the German government. “We have found their servers and seized them – development servers, production servers, backup servers. We have their data – and therefore we have your data. Transactions, registration data, IP addresses. Our search for traces begins. See you soon,” the authorities wrote.
Future Actions
However, German authorities suggest widespread prosecution is unlikely as many offenders reside abroad and are protected by some countries. One of the seized exchanges, Xchange.cash, had been operating since 2012 and facilitated around 1.3 million transactions for 410,000 users. Other seized platforms included 60cek.org, Baksman.com, and Prostocash.com.
German authorities are actively working to curb underground economies and crimes associated with cryptocurrencies, despite the challenges in prosecuting offenders located abroad.
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