Illegal Operations Lead To 47 German Crypto Exchanges Being Raided

German law enforcement has acted against 47 cryptocurrency exchange services operating in the country, citing their role in facilitating criminal activities. The Bundeskriminalamt (BKA), which is the main criminal investigation agency in Germany, announced this crackdown in a recent press release.

Previously, German legislator Joana Cotar led an effort to designate Bitcoin (BTC) as an official currency in the country. Presently, El Salvador and the Central African Republic (CAR) are the only countries to have made BTC legal tender.

Lack Of KYC Policies

According to the announcement, the operation was led by the Frankfurt am Main Public Prosecutor Office and the Federal Criminal Police Office (BKA). They focused on platforms that allowed anonymous exchanges between fiat currencies and cryptocurrency.

Authorities targeted these exchanges due to alleged violations of anti-money laundering laws, specifically the failure to implement adequate know-your-customer (KYC) procedures. The platforms are accused of deliberately hiding the origins of funds obtained through illegal means on a large scale, effectively functioning as criminal trading platforms.

As part of these measures, the BKA and ZIT secured extensive user and transaction data via the disabled exchange services, the agency stated. It was noted that some involved are linked to ransomware groups, botnet operators, and darknet traders.

A Broader Strategy

This operation forms part of a broader strategy to combat cybercrime by disrupting the infrastructure that supports illegal activities, aiming to sever the flow of illicit funds. Additionally, German authorities have recently reported various successes in their efforts against cybercrime, including the seizure of the ChipMixer server infrastructure in 2023, which resulted in approximately 90 million euros being secured.

The BKA also highlighted the dismantling of several criminal marketplaces, including the Kingdom Market, as well as the disabling of significant malware threats like Qakbot and Emotet. In any case, Germany has established a comprehensive regulatory framework for cryptocurrencies, enforcing strict anti-money laundering measures that require KYC compliance to help prevent money laundering and terrorist financing activities.