David Edwards
The German government has taken down 47 cryptocurrency exchanges, accusing them of fostering an “underground economy” that facilitated cybercriminal activity. The crackdown marks a significant move by authorities, who are now shifting their focus toward prosecuting the platforms’ potentially criminal users.
In a joint statement issued on Sept. 19, Germany’s federal criminal police office, Frankfurt’s main prosecutor’s office, and the country’s cybercrime unit claimed that these exchanges had intentionally obscured the origins of illicit funds by failing to comply with anti-money laundering (AML) regulations.
Authorities allege that the exchanges were used by ransomware operators, botnet controllers, and black market traders to convert illegally obtained funds into traditional currencies. The seized websites now display a stern warning from the German government: “We have found their servers… and therefore we have your data. Transactions, registration data, IP addresses. Our search for traces begins. See you soon.”
Despite the strong stance, officials acknowledge that prosecuting the majority of users may be challenging, as many perpetrators reside abroad, often in jurisdictions that either tolerate or protect such activities.
Among the exchanges seized was Xchange.cash, which had been operational since 2012, processing nearly 1.3 million transactions for 410,000 users. Other prominent platforms included 60cek.org, Baksman.com, and Prostocash.com.
