German authorities have shut down 47 crypto platforms, accusing them of facilitating an underground economy that fostered cybercrime. The crackdown is part of an ongoing campaign to combat illegal financial activities linked to ransomware, botnets, and black market traders.
The Federal Criminal Police Office, the Frankfurt General Prosecutor's Office, and the State Office for Combating Cybercrime revealed that these platforms knowingly took no measures to prevent money laundering. By bypassing key controls, the exchanges helped to obscure the origins of illicit money and convert it into legitimate currency.
Seizure of User Data and Transactions
The seized cryptocurrency platforms allowed cybercriminals to transfer money without interference from law enforcement. Authorities have confiscated user data and transaction records from the servers, which will be used in future investigations. On the websites of these exchanges, a warning message from the German government now appears: "We have your data. Transactions, registration data, and IP addresses." This is a clear message to users who believed in the anonymity promised by these platforms.
International Challenges in Law Enforcement
Despite the extensive collection of data, German authorities stated that prosecuting all users could be difficult, as many of these cybercriminals are located in countries with either lenient or non-existent laws against such crimes. However, the authorities are confident that the information gathered will lead to numerous prosecutions, both against platform operators and their users.
These closures follow a similar operation in 2023 when German police seized the Darknet crypto mixer "Chipmixer," recovering 90 million euros. Back in 2020, German investigators also seized 50,000 Bitcoins from the piracy site Movie2k.to, which were later sold for approximately $3.15 billion.
