U.S. and German law enforcement have taken down the domain of Cryptonator, a cryptocurrency wallet platform allegedly used by ransomware groups, darknet marketplaces, and other illegal services. The platform's operator, Roman Boss, has been indicted on charges of money laundering and running an unlicensed money service business.
Cryptonator, established in 2014, allows users to store and exchange various cryptocurrencies within their personal wallets. However, according to blockchain investigation firm TRM, Cryptonator did not implement necessary anti-money laundering controls, enabling anonymous or pseudonymous users to conduct illicit activities.
The primary domain "cryptonator.com" now displays a seizure notice. The operation involved the U.S. Department of Justice, the FBI, the IRS:CI, the National Cryptocurrency Enforcement Team, the German Federal Criminal Police Office (BKA), and the Attorney General's Office in Frankfurt am Main.
Between 2014 and 2023, Cryptonator wallet addresses reportedly engaged in significant transactions, including:
- $25 million 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 hacked and crypto theft operations
- $34 million with illegal cryptocurrency mixers
- $17 million with sanctioned addresses
TRM links Cryptonator's transactions to entities such as Hydra Market, Blender.io, Finiko, Bitzlato, Garantex, Nobitex, and an unidentified terrorist group. The U.S. government has previously sanctioned Hydra Market, Bitzlato, Garantex, and Blender.io.
The Department of Justice's complaint alleges that Cryptonator's account creation process, requiring only an email and password, failed to comply with know-your-customer (KYC) regulations. It also accuses Boss of facilitating illicit activities, including discussions about supporting cryptocurrencies popular in darknet markets, such as Monero, and offering API key integrations for illegal platforms.
The complaint seeks penalties for money laundering, operating an unlicensed money service business, injunctions against Boss, damage relief, and asset seizures. The DOJ revealed that Cryptonator processed over $235 million in illicit funds.