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Germany shuts down 47 crypto exchanges linked to cybercrime

GrafaGrafa2024/09/20 01:35
By:Liezl Gambe

German authorities have dismantled 47 crypto exchange services that were facilitating anonymous transactions for criminal purposes. 

These platforms bypassed standard anti-money laundering (AML) protocols, allowing cybercriminals to exchange digital currencies without verifying identities. 

The takedown comes as part of a broader effort by German law enforcement to combat cybercrime, and the data seized will assist in further investigations. 

The Federal Criminal Police Office (BKA) and the Frankfurt Public Prosecutor’s Office led the operation, shutting down platforms that enabled quick and anonymous exchanges between cryptocurrencies and fiat currencies. 

The authorities noted that these services were particularly appealing to cybercrime groups such as ransomware operators and darknet traders. 

By avoiding identity verification processes, known as the Know Your Customer (KYC) principle, these platforms allowed criminals to launder funds and obscure their origins. 

The BKA emphasised that the platforms targeted in the operation were used to swap digital currencies for other forms of crypto, helping criminals to conceal illicit financial activities. 

Along with the shutdown, authorities have secured significant user and transaction data, which will aid in pursuing further investigations and prosecutions related to these criminal networks. 

German law enforcement has been increasingly focused on disrupting cybercrime infrastructure. 

In 2023, they seized the infamous Chipmixer, a darknet crypto mixer, recovering approximately €90 million. 

Other operations, like the takedown of Kingdom Market and the removal of malware networks such as Qakbot and Emotet, have also weakened the financial channels that cybercriminals rely on. 

The coordinated international effort, including the 2024 “Endgame” operation, targeted these illegal networks and has been instrumental in reducing the capabilities of global cybercriminal organisations. 

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