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20/09/24
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Germany Cracks Down on 47 Crypto Exchanges for Money Laundering Ties
The German government has recently taken significant action against 47 cryptocurrency exchanges, accusing them of deliberately fostering an “underground economy” that supports cybercriminal activities. Authorities, including Germany’s federal criminal police office and the main prosecutor’s office in Frankfurt, claim that these exchanges have failed to comply with legal requirements aimed at combating money laundering, thereby enabling users to conceal the origins of illicitly acquired funds on a large scale.
The investigation has revealed that these platforms have allegedly served users involved in various illegal activities, including ransomware operations and black market trading. These individuals have been reportedly using the exchanges to convert funds derived from criminal activities into legitimate currency. Following the crackdown, the websites of the seized exchanges now prominently display warnings from the government, indicating that their servers and associated data have been confiscated.
Despite this extensive operation, authorities have acknowledged the challenges in prosecuting the offenders. Many of the suspected cybercriminals reside outside of Germany, making it difficult for local law enforcement to take legal action. The authorities noted that some of these criminals may operate from countries that provide them protection, complicating the pursuit of justice.
Among the exchanges that were shut down, Xchange.cash has allegedly facilitated nearly 1.3 million transactions for around 410,000 consumers since its inception in 2012. Other notable platforms affected include 60cek.org, Baksman.com, and Prostocash.com, all of which recorded a significant volume of user activity.
In a related development, the German government, which was once a leading holder of Bitcoin, recently sold nearly 50,000 BTC—valued at approximately $3.15 billion—across various transactions. These assets were originally seized from the piracy site Movie2k.to in 2020, marking a pivotal shift in the government’s stance on cryptocurrency holdings.
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