Germany Shutters 47 Exchanges Over Alleged Illegal Operations

CryptoNews.com · 2024-09-19T21:01:36+00:00

47 crypto exchange platforms in Germany were closed due to non-compliance with anti-money laundering laws. Transactions in both traditional currencies and cryptocurrencies were allowed without registration or verification. The accused facilitated criminal activities, including ransomware groups, darknet vendors, and botnet operators. In January, Saxony officials seized 50K Bitcoins, which were later sold off by the government, causing the currency's value to decline.

CryptoNews.com

2024-09-19 21:01:36

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Crypto Exchange Germany

These platforms allegedly enabled anonymous transactions without registration or verification. Last updated:

September 20, 2024 01:01 EDT

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

September 20, 2024 01:01 EDT

Why Trust Cryptonews With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict editorial standards, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets. Read more about Cryptonews Germany’s public prosecutor announced Thursday the closure of 47 exchange platforms allegedly used for illegal activities. These platforms enabled trading in both traditional currencies and cryptocurrencies.

Authorities accuse those behind the recently closed exchanges of hiding the illegal origins of large sums of money. They allegedly failed to comply with anti-money laundering laws.

Darknet and Cybercrime Syndicates Funneled Illicit Funds via Anonymous Crypto Platforms, Authorities Say

Further, these platforms supposedly allowed transactions without requiring registration or identity verification. Their goal was to enable quick, easy and anonymous exchanges between cryptocurrencies and digital currencies, effectively hiding their origins, according to the statement.

According to the office, these platforms’ clients included ransomware groups, darknet vendors and botnet operators. They used these services to funnel ransom payments and criminal funds into the mainstream financial , allowing them to use illegally obtained money.

Authorities in Germany Seize 50,000 Bitcoin from Movie2k Operators, Later Sold Off by Government

In January, authorities in Saxony, eastern Germany, announced the seizure of nearly 50,000 Bitcoin, valued at $2.2b at the time. This was the largest cryptocurrency seizure in Germany, tied to the operators of Movie2k.to, a film piracy site from 2013. The Bitcoins were transferred to a wallet managed by Germany’s Federal Criminal Police Office.

Subsequently, the government sold hundreds of millions of dollars worth of Bitcoin, causing significant downward pressure on its value. By July 2024, the government had completely sold off its Bitcoin reserves, concluding with a final sale of 3,846 Bitcoins.

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