German Authorities Shut Down 47 Crypto Exchanges

21 Sept

The German government has shut down 47 cryptocurrency exchanges, citing their involvement in illegal activities such as money laundering. The Federal Criminal Police Office (BKA) and the Central Office for Combating Cybercrime announced that these platforms failed to meet the required Know Your Customer (KYC) standards, essential for preventing financial crime by verifying users’ identities and monitoring transactions.

Support Bitesize Bitcoin

According to a press release from the BKA, the targeted exchanges had been facilitating illicit financial activities by deliberately neglecting their legal obligation to implement identity checks. Notably, some of the exchanges, including Xchange.cash, 60cek.org, and Baksman.com, were linked to laundering operations. While one of these platforms had been operating since 2012, others had launched as recently as last year.

During the investigation, authorities seized transaction data and other customer information from these platforms. However, they acknowledged that many of the individuals behind these exchanges are located in countries outside of Germany, where such criminal activities are tolerated or even shielded from prosecution. As a result, the likelihood of successfully prosecuting those responsible remains low. Instead, German officials plan to focus on dismantling the infrastructure that enables these illicit activities, aiming to weaken the networks that allow money laundering and other crimes.

This action follows an earlier case this year, where German authorities seized 49,857 Bitcoin—valued at $2.1 billion at the time—from operators of the illegal streaming site Movie2k.to, which had been shut down in 2013 for copyright violations. The BKA sold the recovered Bitcoin in July, contributing to market disruption due to selling pressure. The sale coincided with repayments by the defunct exchange Mt. Gox, further intensifying the volatility in global Bitcoin markets.

Articles