• German authorities shut down 47 exchanges, some using crypto, to facilitate money laundering
• The exchanges allegedly eschewed know-your-customer protocols to check a user’s identity before allowing digital asset transactions
• The law enforcement agencies secured user and transaction data from the exchanges to continue fighting against cybercrime
German authorities have shut down 47 exchanges that allegedly facilitated money laundering, including some that used cryptocurrencies.
Background
Two German government agencies led the shutdown – the Frankfurt am Main Public Prosecutors Office and the Central Office for Combating Internet Crime (ZIT) along with the Federal Criminal Police Office (BKA).
The 47 exchanges were hosted in Germany. Authorities argue the platforms committed money laundering by acquiring and concealing the origin of illicit funds, according to a Thursday release.
Lack of Identity Checks
The exchanges also failed to implement know-your-customer protocols to check a user’s identity before allowing digital asset transactions. Authorities say the anonymous origin of funds on these exchanges facilitated the movement of illegally obtained money. As part of the investigation, the ZIT and BKA secured user and transaction data to continue fighting cybercrime.
Earlier Crypto Crime Crackdown
Earlier this year, German authorities seized 50,000 BTC (worth $2 billion at the time) from the now-defunct illegal streaming site Movie2K.
Authorities Continue Fighting Financial Crime
The shutdown of the 47 exchanges shows German authorities remain committed to fighting financial crime involving cryptocurrencies and illegal online platforms. By securing data on users and transactions, investigators can continue working to cut off avenues for money laundering and trace the flow of illicit funds.
