Global Authorities Shutter Crypto Wallet Platform Cryptonator for Money Laundering

U.S. and German authorities recently coordinated to shut down popular crypto wallet platform Cryptonator for its involvement in facilitating money laundering to threat actors.

Joint Effort to Seize Cryptonator

The shutdown was part of joint action by the US Department of Justice (DoJ), National Cryptocurrency Enforcement Team, the FBI, IRS, Germany’s Federal Criminal Police Office (BKA), and the Attorney General’s Office in Frankfurt am Main.

The cryptocurrency exchange is accused of facilitating massive financial crimes, such as sheltering stolen cryptocurrencies and laundering ransom payments.

Alleged Operator Faces Several Charges

Authorities have also charged Roman Boss, the alleged operator of the seized platform, on allegations of international money laundering and operating an unlicensed money service business.

Launched in 2014, the now-defunct service enabled users to store cryptocurrency and exchange various crypto tokens from their own wallet.

According to blockchain intelligence company TRM, Cryptonator failed to enact measures to prevent money laundering. This oversight allowed users, including those using fake or anonymous identities, to engage in illicit activities through the service.

Cryptonator Shut Down, Visitors Prompted with Seizure Notice

Authorities seized Cryptonator’s main domain, “cryptonator[.]com.” Upon attempting to access the site, visitors are prompted with a seizure notice.

According to the DoJ, Roman Boss, the administrator behind Cryptonator, oversaw transactions between 2014 and 2023 involving substantial amounts of illicitly obtained funds.

These included $25 million exchanged with darknet markets and fraud shops, $34.5 million with scam addresses, $80 million with high-risk exchanges, $8 million with ransomware-associated addresses, $54 million with hacking and crypto theft operations, $34 million with illegal cryptocurrency mixers, and $17 million with sanctioned addresses.

Transactions Linked to Previously Sanctioned Crypto Platforms

Blockchain intelligence firm TRM linked these transactions to previously sanctioned criminal entities, including Hydra Market and Blender.io.

Allegedly, Cryptonator's only requirement for user account setup was an email and password, which fails to meet the know-your-customer (KYC) standards mandated by anti-money laundering laws.

Furthermore, the complaint accuses Roman Boss of deliberately facilitating illegal activities on the platform. Evidence presented includes discussions about adding cryptocurrencies like Monero, popular on darknet markets, and integrating API keys with these illicit platforms.