Crypto ATM sting in Germany leads to $28m seizure

German authorities seized 13 crypto ATMs and around $28 million in cash across 35 locations.

It’s been a busy summer for Germany and crypto. German authorities have faced criticism for their negative stance on crypto after selling confiscated Bitcoin (BTC). The latest raids on August 20th reveal that German authorities are still cracking down on crypto abuse.

According to Reuters, German authorities conducted a massive anti-money laundering operation on August 20, seizing 13 cryptocurrency ATMs and approximately $28 million in cash at 35 locations across the country.

The raids, carried out by financial regulator BaFin in cooperation with the police and the Bundesbank, targeted machines that did not have the necessary licenses and posed significant money laundering risks.

Crypto ATMs are machines that allow users to buy and sell cryptocurrencies like Bitcoin using cash or debit cards. They work similarly to traditional ATMs, but are designed specifically for cryptocurrency transactions.

Crypto ATMs Authorized in Germany

BaFin found that converting euros into cryptocurrencies and vice versa constitutes a commercial activity that requires express authorization under Germany’s Banking Act.

The unlicensed operation of these ATMs has raised concerns about their potential links to criminal activity, including money laundering and terrorist financing, given the anonymity often associated with such transactions.

The watchdog reiterated its commitment to preserving the integrity of the German financial system and stressed the importance of complying with regulations to protect consumers.

ATM operators could now face up to five years in prison, according to AML Intelligence.