In a move against cybercriminal activities, the German government has shut down 47 cryptocurrency exchanges, accusing them of facilitating an “underground economy.”
According to Germany's federal criminal police office, Frankfurt's prosecutor’s office, and the country’s cybercrime office, these exchanges knowingly allowed illegal funds to flow through their platforms.
The authorities claim the exchanges failed to meet legal requirements to combat money laundering, enabling cybercriminals to launder their ill-gotten gains.
The exchanges are alleged to have been used by a variety of criminals, including “ransomware operators, botnet controllers, and black-market traders.” These criminals reportedly used the exchanges to convert illicit funds into legitimate currencies.
The German government has seized the servers of these platforms and issued a clear message on their websites, warning users that their data has been collected, including transaction details, registration information, and IP addresses.
There’s a Catch
Despite this significant seizure, the German authorities acknowledged that a full prosecution might not be “feasible” due to the international nature of the cybercriminals involved.
In a statement released on September 19 concerning this development, the German authorities noted,
“In order to combat cybercrime sustainably, personal investigations, i.e. the identification and successful prosecution of criminals, are an important and effective approach. However, since cybercriminals often reside abroad and are tolerated or even protected by some countries, they often remain inaccessible to German law enforcement.”
The authorities further revealed that this doesn’t mean nothing can be done in this type of case.
According to the German authorities, in scenarios like these, the measures taken by the law enforcement authorities are “therefore also aimed at weakening and dismantling the infrastructure of cyber criminals.”
They added,
“This infrastructure approach has recently enabled the underground economy to be deprived of considerable financial resources. In addition, IT systems and data have been secured, which have led to further investigations.”
Among the exchanges seized, Xchange.cash stands out, having been active since 2012. This platform is believed to have facilitated nearly 1.3 million transactions for 410,000 users.
Other notable platforms taken down include 60cek.org, Baksman.com, and Prostocash.com, all of which had high user and transaction counts.
The statement revealed that the German authorities are now focusing on tracking down individuals involved in these transactions, though the international nature of the crimes still presents considerable challenges.
