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The Federal Criminal Police Office (BKA) recently announced that it has shut down 47 exchange services hosted in Germany after they were found to be used for criminal purposes. 

According to the press release, the operators of the closed exchange services were accused of concealing information about funds that they allegedly received from criminal origins.

Additionally, the crypto exchanges failed to take the necessary measures required to combat money laundering, thus violating the German Criminal Code. 

The defunct crypto exchanges also conducted transactions without completing the necessary registration process and lacked an efficient Know-Your-Customer (KYC) procedure.

Addressing “ransomware affiliates, botnet operators and darknet vendors,” the German authorities posted a warning for crypto exchanges such as Xchange, 60cek and Baksman, claiming:

“For years, the operators of these criminal exchange services have led you to believe that their hosting cannot be found, that they do not store any customer data and that all data is deleted immediately after the transaction. An apparently unregulated hub allowing you to launder the proceeds of your criminal activities without fear of prosecution.”

The authorities—continuing their fight against cybercrime—also mentioned that they have seized the exchange's servers, along with transaction details, registration data, and IP addresses. The anonymity features of the exchanges attracted bad actors, allowing them to continue conducting illicit activities.

The German authorities promised to continue weakening and dismantling the infrastructure of cybercriminals. Furthermore, they pledged to conduct investigations aimed at identifying and prosecuting cybercriminals.