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Feds Seize Cryptonator Wallet in $150 Million Illegal Operation

Last weekend, users of Cryptonator, an online wallet and cryptocurrency exchange, were shocked when the platform was abruptly closed

Arslan Butt•Wednesday, August 7, 2024•2 min read

Last weekend, users of Cryptonator, an online wallet and cryptocurrency exchange, were shocked when the platform was abruptly closed in a joint operation involving the FBI, the US Internal Revenue Service (IRS), and German law enforcement.

Cryptonator provides services for storing and transferring cryptocurrencies, as well as exchanging them for different types. Although the platform was open to legitimate use, its lax oversight made it a target for illegal activities, leading to its seizure.

Alarming Financial Transactions Uncovered

IRS special agent Justin Allen provided testimony indicating that Bitcoin addresses associated with Cryptonator were involved in transferring approximately $71 million to entities sanctioned by the US. The platform also processed about $54 million in transactions linked to hacked or stolen funds, $25 million with dark-web marketplaces or fraudulent operations, and over $8 million related to ransomware activities.

The exchange profited by taking a 0.9 percent fee on these merchant transactions. “Cryptonator’s business model intentionally catered to a criminal clientele, facilitating a range of illegal activities,” a Tampa, Florida criminal indictment revealed.

Legal Actions and Undercover Operations Expose Depth of Fraud

Roman Boss, also known as Roman Pikulev, a Russian national residing in Germany and the CEO of Cryptonator, is at the center of these allegations. Boss established the exchange in December 2013 and operated it under the guise of anonymity.

According to court documents, an FBI operative in Florida conducted a sting operation in July 2021, using Cryptonator to purchase about $4,195 in digital cash from a dark web site known for dealing in stolen identification records. “All transactions are anonymous and will be mixed to disguise their origins,” Boss reportedly assured the agent.

In a subsequent operation in September, another FBI agent posed as an affiliate of a ransomware group and engaged in transactions through Cryptonator, further highlighting the platform’s involvement in criminal activities.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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