Crypto-Laundering Wallet Platform ‘Cryptonator’ Shut Down by US and German Authorities

• The Cryptonator platform was seized by authorities on suspicion of intently supporting money laundering.
• The wallet website’s creator was also accused of illegally operating a money service.
• Millions of dollars passed through Cryptonator in connection to various frauds and ransomware.

Digital wallet and online cryptocurrency exchange Cryptonator was seized in a U.S. and German authorities’ operation, which also resulted in charging its alleged operator, Roman Boss, for operating an unlicensed money service business and international money laundering. 

The joint operation involved the U.S. Department of Justice (DoJ), National Cryptocurrency Enforcement Team, Internal Revenue Service (IRS), FBI, and German Federal Criminal Police Office (BKA) and Attorney General’s Office in Frankfurt am Main.

Cryptonator was launched in 2014 and used for storing cryptocurrency and exchanging crypto tokens from individuals’ or merchants’ wallets, sometimes for nefarious purposes. Authorities say that Cryptonator constantly received the criminal proceeds of numerous hacking incidents, ransomware, scams, fraud, and identity theft schemes.

The IRS said Bitcoin wallet addresses controlled by Cryptonator were used to transaction $71 million with entities sanctioned by U.S. authorities, $54 million from stolen funds, $25 million from Dark Web marketplaces or fraud outfits, and over $8 million from ransomware campaigns, with the exchange retaining 0.9% of merchant transactions.

Blockchain intelligence company TRM indeed linked some of these transactions to criminal entities that have been previously sanctioned in the U.S., including Hydra Market and Blender.io.

Allegedly, Cryptonator only requires an email address and password to set up a user account, which goes against the anti-money laundering laws’ know-your-customer (KYC) standards.

The IRS report said the site's CEO, Roman Boss, also known as Pikulev, is accused of knowingly facilitating illegal activities on the Cryptonator platform, presenting evidence such as discussions about adding cryptocurrencies popular on DarkNet markets and integrating API keys with illegal platforms.

It continues to say the Russian national living in Germany created Cryptonator in December 2013 using the email address [email protected].