Crypto

German Law Enforcement Seizes Russian No KYC Exchanges – Chainalysis

Published

2 years ago

September 25, 2024

German Law Enforcement Seizes Russian No KYC Exchanges – Chainalysis

On September 19, 2024, the German Federal Criminal Police (BKA) seized the infrastructure of 47 Russian-language no-KYC (Know Your Customer) cryptocurrency exchanges. Dubbed “Operation Final Exchange,” the takedown stands out not only for its breadth, but also for the light it has shined on the central role instant-swap style no-KYC exchanges play in facilitating on-chain cybercrime.

As their name suggests, no-KYC exchanges have no known process for collecting customer information before allowing any level of deposit or withdrawal. They do not require a name, phone number, or email address, and make no attempt to verify this information prior to permitting transactions. As such, these services allow a range of cybercriminals to abuse their services without KYC controls to identify or disrupt illicit activity. The BKA’s Operation Final Exchange landing page calls out ransomware affiliates, botnet operators, and darknet vendors as users of the 47 targeted exchanges. Beyond that, these services offered fiat on- and off-ramping for sanctioned Russian banks, creating an avenue for sanctions evasion.

Below, we’ll dive into these exchanges’ on-chain activity, explore their nexus to sanctioned Russian banks, and discuss the disruption’s implications.

Who are these 47 No KYC Exchanges?

Our data reveals interesting patterns about the services targeted by the BKA, with robust direct and indirect exposure to various illicit services. At least seventeen of the exchanges saw a month of more than 50% of direct inflows from illicit sources. At least twelve saw a month where more than 30% of direct inflows were from darknet marketplaces (DNMs). At least six saw at least one month where stolen funds comprised more than 30% of total direct inflows. At least five had at least one month where more than 30% of indirect inflows were from sanctioned entities.

This exposure demonstrates that for many of these services, laundering illicit funds was a substantial part of their businesses. Indeed, as depicted in the below Chainalysis Crypto Investigations graph, the top ten services targeted by the BKA transacted with a broad array of illicit services, including, but not limited to, sanctioned entities, ransomware actors, DNMs, and darkweb escrow and breached data brokers.

The chart below shows the quarterly inflows to the top ten exchanges taken down by the BKA. These services received value from a variety of sources, including periods of significant inflows from drug-related DNMs, online pharmacies, malicious cybercriminals such as ransomware gangs, and funds stolen in heists and scams.

There is also a notable increase over time in the proportion of inflows from legitimate sources, notably centralized exchanges. While this change to the composition of inflows might in other circumstances suggest that the services were in the process of cleaning up their platforms, the reality is likely more complicated. In this case, the increased inflows from otherwise legitimate sources most likely represent the growing use of these services for sanctions evasion on the part of Russian nationals, who are likely trying to leverage these no KYC exchanges to evade sanctions on Russian banks.

How do these services work?

These services operate as instant-swap style services, in which users, without providing any personal information or going through any verification process, can swap from one currency to another. The offerings include crypto-to-crypto and fiat-to-crypto swaps, allowing users to instantly exchange popular cryptocurrencies and stablecoins, or to connect their bank account to on-/off-ramp fiat to crypto instantly.

As with other categories of the illicit crypto ecosystem, we have observed that no KYC exchanges, particularly those targeted by the BKA, often have overlapping or similar on-chain infrastructure, and in some instances even share off-chain networks, such as website shells, employees and administrators, physical locations, and ownership structures, to name a few. More often than not, these websites have no affiliated company incorporation, registration, phone numbers, physical addresses, or any indicator of jurisdictional operation. Unlike other high-risk and illicit services, most of these services do not have a social media presence, instead offering users the ability to interface with a bot on their homepages. Despite using servers based in Germany, these services cater primarily to a Russian clientele, as suggested by their default language settings in Russian and information on banking services for fiat transactions provided by sanctioned Russian banks, such as Sberbank.

Connectivity to sanctioned Russian banks

Many of the 47 no KYC exchanges were Russian-language platforms offering fiat-to-crypto and crypto-to-crypto instant exchange services. As we covered in our recent analysis of Russia’s new cryptocurrency legislation, Russian-language instant exchangers can be exploited to quickly move fiat currency from sanctioned Russian banks to specified crypto wallets, enabling entities to evade sanctions. Given the dramatically increased sanctions pressure on Russian banks following the full-scale invasion of Ukraine in February 2022, instant exchangers have emerged as a convenient way to on- or off-ramp funds for sanctioned banks. Of the 47 no KYC exchanges targeted in Operation Final Exchange, all that we have identified on-chain accepted on- and off-ramping with sanctioned Russian banks.

Breadth of disruption likely to generate actionable inroads

Most of the exchanges targeted by BKA have been active since 2021 or before, and the top three in terms of transactions processed – Xchange.cash, 60cek.org, and Bankcomat.com – have been active since 2016 or before, according to the Operation Final Exchange landing page. The longevity of these services suggests a substantial portion of customers affected will need to establish alternative financial facilitation and laundering pathways.

The disruption’s impact is likely to extend far beyond the no KYC exchanges targeted. As the BKA stated, it is now in possession of these exchanges’ development, production, and backup servers, as well as transactional details, registration data, and IP addresses. This data will likely be instrumental in generating follow-on leads for the BKA and key international law enforcement partners in the months to come. We continue to track this phenomenon closely and will flag new no KYC exchanges that emerge as key players in this space.

This website contains links to third-party sites that are not under the control of Chainalysis, Inc. or its affiliates (collectively “Chainalysis”). Access to such information does not imply association with, endorsement of, approval of, or recommendation by Chainalysis of the site or its operators, and Chainalysis is not responsible for the products, services, or other content hosted therein.

This material is for informational purposes only, and is not intended to provide legal, tax, financial, or investment advice. Recipients should consult their own advisors before making these types of decisions. Chainalysis has no responsibility or liability for any decision made or any other acts or omissions in connection with Recipient’s use of this material.

Chainalysis does not guarantee or warrant the accuracy, completeness, timeliness, suitability or validity of the information in this report and will not be responsible for any claim attributable to errors, omissions, or other inaccuracies of any part of such material.

Related Topics:Germany No KYC Exchange Russia Sanctions

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Crypto

Iran Moves to Close the Strait of Hormuz as Tensions Erupt Over Broken Ceasefire Deal

Published

9 hours ago

June 20, 2026

Press Room

Iran Moves to Close the Strait of Hormuz as Tensions Erupt Over Broken Ceasefire Deal

Key Takeaways

Iran Announced Closure of the Strait of Hormuz After Lebanon Strikes

The Iranian regime is taking action against what it qualifies as a breach of the previously signed memorandum of understanding to end the current conflict in the Middle East.

Local reports indicate that Iran’s Khatam al-Anbiya Central Headquarters, the operational headquarters of the Iranian military, announced that it would close the Strait of Hormuz, a strategic passage for 20% of the world’s oil, as a retaliatory measure after the U.S. failed to comply with the first clause of the memorandum of understanding (MoU) signed by President Donald Trump and Iranian President Masoud Pezeshkian.

The first clause of the document stresses that “the United States of America and the Islamic Republic of Iran and their allies in the current war, by signing this MOU, declare the immediate and permanent termination of military operations on all fronts, including in Lebanon, and undertake from now on not to initiate any war or any military operation against each other.”

The measure comes as the Israel Defense Forces (IDF) launches a massive air strike campaign against objectives in Lebanon, hitting at least 80 targets allegedly linked to Hezbollah, and killing dozens of its members. Nonetheless, Lebanese authorities claim that over 47 people were killed and 97 people were wounded during these strikes.

U.S. Central Command (CENTCOM) issued a statement contradicting the Iranian regime, stressing that commercial ship traffic “increased June 20 as U.S. forces continued operating in the general area to support freedom of navigation.” “Safe passage through the international waterway remained intact today as 55 merchant ships transited, moving large amounts of cargo and more than 17 million barrels of oil to global markets,” it stressed.

A new closure of the Strait would result in a general rise in prices of the West Texas Intermediate (WTI) and Brent oil benchmarks, which have fallen to $77 and $80, respectively, in response to actions taken to end the U.S.-Israel-Iran conflict.

The action could negatively affect crypto markets, as Bitcoin climbed above $66K immediately after the announcement of a framework to end the war, with market actors jumping to risk assets.

Crypto

Ireland Targets Crypto Assets in New Strategy to Disrupt Illicit Cash Flows

Published

20 hours ago

June 20, 2026

Press Room

Ireland Targets Crypto Assets in New Strategy to Disrupt Illicit Cash Flows

Key Takeaways

Targeting Digital Assets and Crypto Loopholes

Ireland announced a sweeping crackdown on financial crime on June 18, unveiling a national strategy that places a major emphasis on targeting the misuse of cryptocurrency and digital finance by increasingly sophisticated criminal networks.

The new initiative, which includes a National Risk Assessment and a 30-point action plan, was launched by Tánaiste and Minister for Finance Simon Harris and Minister for Justice Jim O’Callaghan. Officials said the package is specifically engineered to close loopholes created by emerging technologies, with crypto-assets identified as a primary front in the country’s defense against illicit cash flows.

Under the new plan, Ireland will implement enhanced safeguards around crypto-assets to prevent their use in money laundering, fraud, and terrorist financing. The government plans to enforce tougher oversight on digital finance platforms alongside increased transparency around corporate ownership.

“Criminals are becoming increasingly sophisticated, exploiting technology, operating across borders and adapting rapidly to change,” Harris said during the announcement. “Government cannot stand still in the face of these threats.”

Harris emphasized that tech-driven financial crimes carry severe human costs. “Financial crime is not a victimless crime,” he said. “Behind every fraud, scam and money laundering operation, there are real victims — older people losing their savings, families being defrauded and communities harmed by criminal activity.”

The risk assessment warns that Ireland’s global financial networks are facing evolving threats. In addition to stricter cryptocurrency regulations, the 30-point plan introduces tougher anti-money laundering measures within the gambling sector, boosts intelligence sharing between state agencies, and mandates closer coordination among financial crime, tax, and customs investigators.

O’Callaghan said the roadmap provides a practical blueprint to keep Ireland’s regulatory and enforcement responses agile enough to match the pace of technological change.

“This National Risk Assessment provides a comprehensive picture of the threats we face and the actions required to address them,” O’Callaghan said, noting that the strategy will unify efforts across regulators, industry, and law enforcement.

Enforcement of the new policies will involve joint operations between government ministries, the Central Bank, Ireland’s tax authority, and An Garda Síochána, the national police force. Officials noted that the regulatory framework for digital assets will be continually updated to ensure Ireland remains a secure jurisdiction for international business.

Crypto

Best Crypto Recovery Law Firms in 2026: Leading Cryptocurrency Lawyers for Asset Recovery, Fraud Investigations and Digital Asset Disputes

Published

1 day ago

June 19, 2026

Press Room

Best Crypto Recovery Law Firms in 2026: Leading Cryptocurrency Lawyers for Asset Recovery, Fraud Investigations and Digital Asset Disputes

Introduction

Cryptocurrency fraud has become one of the fastest-growing forms of financial crime worldwide. Investment scams, fake trading platforms, wallet compromises, pig-butchering schemes, recovery scams, phishing attacks, and hacking incidents continue to affect thousands of investors and businesses every year.

As digital assets have become increasingly mainstream, the demand for specialist cryptocurrency lawyers has grown significantly. Unlike traditional financial disputes, crypto-related matters often involve blockchain analysis, digital evidence, international jurisdictions, cryptocurrency exchanges, compliance considerations, and highly technical investigations.

The best crypto recovery law firms combine legal expertise with a deep understanding of blockchain technology, financial crime, digital asset tracing, and cryptocurrency investigations. Some specialise in assisting individual victims, whilst others focus primarily on institutions, exchanges, funds, and large-scale commercial disputes.

This guide highlights five law firms that have established reputations within cryptocurrency recovery, digital asset investigations, blockchain disputes, fraud prevention, and financial crime matters.

1. Crypto Legal

Website: https://www.cryptolegal.uk

Why We Selected Crypto Legal as Our Top Choice

Crypto Legal stands out because it combines specialist cryptocurrency lawyers, blockchain forensic investigators, intelligence analysts, compliance professionals, and digital asset experts within a single organisation.

Unlike many traditional law firms that outsource technical investigations to third parties, Crypto Legal performs blockchain investigations and forensic analysis internally. This allows legal and forensic teams to work together throughout a matter, providing clients with both legal expertise and technical blockchain intelligence.

Established in 2017, Crypto Legal has operated as a crypto-native legal and forensic practice since the early stages of the digital asset industry. The firm specialises in cryptocurrency fraud investigations, blockchain forensics, digital asset tracing, AML compliance, financial crime prevention, Web3 advisory services, and cryptocurrency-related disputes.

The firm has accumulated more than 70 industry awards and recognitions and has been recognised by organisations including the European Legal Awards, Legal Insider, Leaders in Law, and the Digital Economy Council of Australia.

Particularly impressive is Crypto Legal’s multidisciplinary structure, which combines legal professionals, blockchain investigators, forensic analysts, intelligence specialists, compliance experts, and cryptocurrency professionals under a single framework.

Key Areas of Focus:

Cryptocurrency fraud investigations
Blockchain forensics
Digital asset tracing
Asset recovery support
Financial crime investigations
AML compliance
Exchange disputes
Cryptocurrency scam investigations
Web3 legal services

2. LegalByte

Website: https://www.legalbyte.io

LegalByte has developed a strong reputation for cryptocurrency fraud investigations, cybercrime matters, blockchain tracing, hacking incidents, wallet compromise investigations, and investment scam cases.

The firm focuses heavily on matters involving stolen cryptocurrency, fraudulent investment platforms, phishing attacks, exchange disputes, recovery scams, and digital asset tracing exercises.

LegalByte’s experience in both legal and forensic aspects of cryptocurrency investigations makes it particularly suitable for individuals and businesses seeking specialist assistance following hacking incidents or suspected fraud.

Key Areas of Focus:

Cryptocurrency theft investigations
Blockchain tracing
Hacking incidents
Investment fraud
Recovery scam investigations
Cybercrime matters
Wallet compromise cases
Financial crime investigations

3. Mishcon de Reya

Website: https://www.mishcon.com

For very large and complex cryptocurrency disputes, Mishcon de Reya is one of the most recognised names in the market.

The firm has been involved in several high-profile digital asset and fraud-related matters and possesses substantial experience handling sophisticated commercial disputes involving digital assets, fraud, asset preservation, injunctions, and cross-border litigation.

However, the firm primarily serves corporations, financial institutions, funds, high-net-worth individuals, and large commercial clients. For smaller retail recovery matters, specialist crypto-native firms may often be more suitable.

Where a matter involves significant sums, multiple jurisdictions, extensive litigation, or complex fraud structures, Mishcon de Reya remains a notable option.

Key Areas of Focus:

Commercial fraud
Digital asset disputes
Asset preservation
Cross-border disputes
High-value litigation
Financial crime matters

4. Andersen

Website: https://www.andersen.com

Many cryptocurrency investors are unaware that losses arising from hacks, scams, thefts, or fraudulent investment schemes may have tax implications depending on their jurisdiction and circumstances.

Andersen is one of the world’s leading tax advisory firms and has developed substantial expertise in cryptocurrency taxation, digital asset compliance, tax reporting, and crypto-related tax planning.

Whilst Andersen is not a cryptocurrency recovery firm, its expertise can be highly valuable following a loss event. Investors should understand whether losses may be reportable or potentially deductible under applicable tax frameworks.

For this reason alone, Andersen deserves consideration within any discussion relating to cryptocurrency recovery planning.

Key Areas of Focus:

Cryptocurrency taxation
Digital asset tax planning
Tax compliance
International tax matters
Crypto reporting obligations
Tax treatment of digital asset losses

5. CMS

Website: https://www.cms.law

CMS is one of the largest international law firms operating within the blockchain and digital asset sector.

Unlike specialist crypto recovery firms, CMS focuses more heavily on regulatory advisory work, financial services, fintech, digital asset compliance, commercial matters, and institutional legal services.

Although the firm is not primarily known for cryptocurrency recovery or blockchain investigations, its extensive international presence and expertise in financial regulation make it a valuable option for businesses, exchanges, fintech companies, and institutional participants operating within the digital asset sector.

Its inclusion highlights the importance of regulatory compliance and legal risk management in preventing cryptocurrency disputes before they arise.

Key Areas of Focus:

Financial regulation
Fintech advisory
Digital asset compliance
Commercial law
Blockchain projects
International legal services

Final Thoughts

Cryptocurrency recovery often requires far more than legal advice alone. Successful outcomes frequently depend upon a combination of blockchain forensics, digital asset tracing, intelligence gathering, fraud analysis, regulatory expertise, and legal strategy.

For individuals and businesses seeking specialist assistance with cryptocurrency fraud, scams, asset tracing, hacking incidents, or blockchain investigations, firms that combine legal and forensic capabilities generally offer the most comprehensive approach.

Among the firms reviewed, Crypto Legal stands out for its unique integration of legal services and in-house blockchain forensic expertise, whilst LegalByte remains a strong specialist option for hacking incidents, fraud investigations, and cryptocurrency-related cybercrime matters.

Disclosure: This content is provided by Crypto Legal. Insider Monkey’s editorial team doesn’t review the content provided by third party contributors for accuracy.