Users of Cryptonator – an online digital wallet and cryptocurrency exchange – were shocked last weekend when the service was shut down in a coordinated operation involving the FBI, the US Internal Revenue Service (IRS), and German police.
Cryptonator allowed users to store crypto-coins remotely, transfer funds, and exchange cryptocurrencies for other types. While it had legitimate uses, the service turned a blind eye to potentially questionable activities, leading to its seizure by the authorities.
According to IRS special agent Justin Allen, Bitcoin wallet addresses associated with Cryptonator were involved in transactions totaling $71 million with entities sanctioned by US authorities. Another $54 million was tied to “hacked or stolen funds,” $25 million was linked to dark-web marketplaces or fraud operations, and over $8 million was connected to ransomware campaigns.
Court documents reveal that Cryptonator collected a 0.9 percent fee on merchant transactions.
An indictment filed by the Feds in a Tampa court describes Cryptonator as part of an international money laundering scheme that catered to criminals engaging in computer hacking, ransomware, fraud, and identity theft.
CEO Roman Boss, also known as Roman Pikulev, a Russian national residing in Germany, founded the exchange in 2013 using the email address [email protected]. He was implicated in various criminal activities facilitated by Cryptonator.
In a sting operation in July 2021, an FBI operative used Cryptonator to make purchases on a dark web site trading in stolen identification records. Boss allegedly assured the agent of transaction anonymity and currency mixing to conceal the source of funds.
Boss faces charges of operating an unlicensed money transmitting business and conspiracy to commit money laundering. The DoJ and IRS are pursuing his arrest and the forfeiture of illegal funds. At the time of writing, neither agency has responded to The Register‘s request for comment.
