47 crypto exchanges closed in Germany over criminal activity allegations

German authorities have shut down 47 cryptocurrency exchanges that were facilitating criminal activities, including money laundering. 

The coordinated action was led by the Central Office for Combating Internet Crime (ZIT) and the Federal Criminal Police Office (BKA), marking a significant step in Germany’s efforts to fight cybercrime.

The platforms in question were found to allow anonymous crypto transactions, enabling users to hide the origins of illicit funds. 

According to authorities, these exchanges violated anti-money laundering (AML) laws by failing to enforce the know-your-customer (KYC) requirements, which are designed to ensure transparency and accountability in financial transactions. 

Criminal networks, including ransomware operators, darknet traders, and botnet operators, reportedly used these platforms to launder money and convert illegal funds into legitimate currency.

As part of the operation, German law enforcement seized servers, user data, and transaction records from the exchanges. 

This data is expected to play a key role in further investigations into both the operators and the users of these platforms. 

Authorities warned that they now have access to critical information, including registration details and IP addresses, challenging the belief that these exchanges could operate in complete secrecy.

“For years, the operators of these criminal exchanges assured users that their data would be untraceable,” officials said. 

“We’ve now seized their servers and have access to everything — from production to backup servers. The data is in our hands.”

This shutdown is part of a broader effort by German authorities to dismantle illegal crypto operations. 

Earlier this year, the BKA worked with U.S. authorities to seize the domain of Cryptonator, a platform accused of insufficient anti-money laundering controls. 

In a separate operation, they seized 50,000 Bitcoin from a piracy website and recovered €90 million after shutting down ChipMixer, a service used to obfuscate the origins of cryptocurrency transactions.

Germany’s intensified actions against illegal crypto exchanges highlight the growing importance of regulating digital currencies, ensuring that these platforms cannot be exploited for criminal purposes