US DOJ Targets Cryptoboss Over $1.4B Illegal Funds

The US Department of Justice has filed charges against Roman Pikulev for allegedly creating and operating the unlicensed Cryptonator cryptocurrency platform, through which more than $235 million in illegal funds were processed.

According to an accusatory conclusion, Pikulev and his associates ran Cryptonator from 2014 to March 2023, facilitating an international money laundering scheme primarily serving criminal entities. The platform allegedly received funds acquired through various illicit means such as computer hacks, ransomware attacks, fraud, and theft of personal data.

Cryptonator was never registered with the American Financial Crimes Enforcement Network (FinCEN), a federal offense. The Justice Department asserts that the platform lacked robust anti-money laundering processes and an effective compliance program. Pikulev allegedly knew that the funds processed through Cryptonator were either obtained through criminal activities or intended to support such illegal endeavors.

Cybercriminals reportedly utilized the platform for exchanging cryptocurrencies and converting them into fiat currency. Pikulev allegedly implemented features in Cryptonator that obscured the source of funds. He also went by the pseudonym “Boss” in official communications and managed the platform through various IT service providers in the US, while advertising its services on American social media platforms.

Furthermore, investigators obtained a warrant to search an email address linked to Pikulev’s registration of Cryptonator.com. In total, the platform facilitated over 4 million transactions amounting to $1.4 billion, with Pikulev allegedly earning a percentage from each transaction. According to data from trm Labs, there were numerous Cryptonator transactions and connections with other illicit markets like Blender, Hydra Market, Bitzlato, and Garatex.

Bitcoin addresses associated with Cryptonator were found to have engaged in transactions involving:

  • more than $25 million with dark markets or fraudulent stores;
  • more than $34.5 million sourced from fraudulent addresses;
  • more than $80 million from high-risk exchanges;
  • more than $8 million from extortion-related addresses;
  • more than $54 million from addresses linked to cryptocurrency theft through hacks;
  • more than $34 million through crypto mixers;

/Reports, release notes, official announcements.