German law enforcement has seized 47 cryptocurrency exchange services operating within the country, which were used to facilitate illegal money laundering for cyber criminals, including ransomware gangs. These platforms enabled users to trade cryptocurrencies without adhering to “Know Your Customer” regulations, allowing complete anonymity in transactions. This lack of oversight created a low-risk environment for cyber criminals to launder their earnings without the fear of prosecution or detection.
The Federal Criminal Police Office (BKA) stated, “Exchange services that allow anonymous financial transactions and facilitate money laundering are key components of the cyber crime ecosystem.” These platforms are utilized by ransomware groups, dark net dealers, and botnet operators to convert extorted ransoms and other illicit earnings into legitimate currency, enabling them to benefit from their criminal activities.
On the users’ trail
When visiting any of the seized exchanges, you are now redirected to a warning page titled “Operation Final Exchange,” which warns visitors that they have been deceived by the promises of anonymity by the operators of these platforms.
“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,” explains Operation Final Exchange website.
“An apparently unregulated hub allowing you to launder the proceeds of your criminal activities without fear of prosecution.”
“We have found their servers and seized them – development servers, production servers, backup servers. We have their data – and therefore we have your data. Transactions, registration data, IP addresses.”
Authorities secured extensive user and transaction data from the platforms, which will aid in future investigations, so subsequent arrests of cybercriminals are expected in the upcoming period as a result of this operation.
The complete list of seized exchanges can be found in the Final Exchange portal, but the most prolific of the seized exchanges are:
- Xchange.cash – over 410,000 users and 1,280,000 transactions
- 60cek.org – over 300,000 users and 900,000 transactions
- Bankcomat.com – over 250,000 users and 760,000 transactions
- Banksman.com – over 280,000 users and 750,000 transactions
- Prostocash.com – over 265,000 users and 470,000 transactions
- Multichange.net – over 185,000 users and 430,000 transactions
As of now, no arrests have been reported in connection with Operation Final Exchange, and BKA noted that identified cybercriminals are often tolerated or protected by their countries of residence, hinting that they’re out of reach.
Still, the law enforcement agency noted that the operators of the seized exchanges face charges of money laundering and running illegal trade platforms on the internet under Sections 127 and 261 of the German Criminal Code (St GB), which can incur multi-year imprisonment sentences.