Germany Shutters 47 Exchanges Over Alleged Illegal Operations

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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.

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 system, allowing them to use illegally obtained money.

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.