Cryptonator taken down | Bitcointalksearch.org

JollyGood

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Sadly for those that may have had funds sitting there, the OP mentioned now that the law enforcement agencies have decided to shut them down they will never see their crypto again. Whereas most people probably moved on with the times and upgraded to better/secure wallets, some may have decided to continue using them and have now lost their funds. From what I recall, I had never heard of "Cryptonator" before therefore just as you I also am glad I never used it.

Quote from: examplens on August 03, 2024, 05:05:01 PM

I have never used this wallet, but now I am glad it is so.

But why do people need to use a large number of different wallets? Isn't that just an unnecessary complication? Now there are already a lot of good multicurrency solutions, so the justification that some wallets do not support a certain coin or token is not adequate

ABCbits

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Quote from: bbc.reporter on August 09, 2024, 08:26:24 PM

On Exodus wallet, their users can also exchange their cryptocoins to other cryptocoins within the wallet. Does this imply that this wallet is also in danger of being accused of moneylaundering and other illegal activities?

IIRC the exchange feature handled by 3rd party, which impose optional KYC verification. So risks faced by Exodus shouldn't be as risky as you expected.

Quote from: bbc.reporter on August 09, 2024, 08:26:24 PM

This is certainly very headshaking because to use a similar argument from the arguments created before this, why imprison the creator of the tool if the tool was used for criminality? If a bank robber used a certain car to rob a bank, does this imply that the creator of the car can also be implicated with the crime?

Usually i would agree, although in this case i won't say that since i barely know about Cryptonator. Besides, it's not the first time and won't be the last time either.

bbc.reporter

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On Exodus wallet, their users can also exchange their cryptocoins to other cryptocoins within the wallet. Does this imply that this wallet is also in danger of being accused of moneylaundering and other illegal activities?

This is certainly very headshaking because to use a similar argument from the arguments created before this, why imprison the creator of the tool if the tool was used for criminality? If a bank robber used a certain car to rob a bank, does this imply that the creator of the car can also be implicated with the crime?

dkbit98

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I saw this news few days ago but I never used Cryptonator in my life and I didn't care much about this.
First I thought this was some kind of mixer with similar name, than I thought it was some exchange, but it turned out to be a custodial wallet.
I checked archived website on wayback machine and I am sure that I never used that service.
Better stop using all custodial crypto services as wallets, that includes exchanges, regulators can seize them at any time.
I guess U.S. German and other authorities have nothing better to do in their life now... Roll Eyes

DaveF

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From what @ABCbits found and what @NotATether experienced I am *100% guessing* that the site went thought a bunch of changes over the years and how they operated changed over time too.

Could be as ownership changed or other things happened they started doing things differently. Or it could have all been scams / lies from the beginning.

Lets be honest after setting up a new wallet and getting your seed phrase how many people actually then take that phrase and put it into a mnemonic checker to make sure that that it generates the same addresses. Or if they give you private keys that they are actually valid.

-Dave

ABCbits

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Quote from: DaveF on August 05, 2024, 10:28:44 AM

Quote from: Baki-crypto on May 21, 2020, 02:57:25 PM

...
Is Cryptonator Safe?

Some of the security features that the wallet offers are:
#1 Control Of The Private Keys
This feature allows you the complete control of your private keys from the onset. Thus, the coins are not vulnerable to theft. This gives power and surety in the user's hand, and the holders can take measures to keep their funds safely.

...

Yes that is as of 4+ years ago so who knows what has changed since then, but in theory people still have access to their crypto.

Since there are different information, i did quick google search. But it leaves more question since many website show different information.

Quote from: cryptopotato.com/top-6-multi-currency-digital-wallets/

Private keys: Held by a third party

Quote from: cryptowisser.com/wallet/cryptonator/

Your private keys are stored by a third party with easy access to them • Low anonymity • Easy to use

Quote from: cryptolinks.com/1191/cryptonatorcom

Private keys are stored by Cryptonator

Quote from: insidebitcoins.com/bitcoin-wallets/cryptonator

Unlike some other cryptocurrency wallets, this one allows you full control of your private keys.

Quote from: forex.academy/cryptonator-wallet-review/

Full control over private keys: In case of an online attack, hackers are capable of gaining access to the user’s private keys. For this reason, Cryptonator provides users with full control of their private keys. They can export and store them in the best place they see fit.

I also found their help page on https://cryptonator.zendesk.com/hc/en-us, but there's no concentrate answer whether Cryptonator is custodial or not.

NotATether

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Quote from: DaveF on August 05, 2024, 10:28:44 AM

Quote from: Baki-crypto on May 21, 2020, 02:57:25 PM

...
Is Cryptonator Safe?

Some of the security features that the wallet offers are:
#1 Control Of The Private Keys
This feature allows you the complete control of your private keys from the onset. Thus, the coins are not vulnerable to theft. This gives power and surety in the user's hand, and the holders can take measures to keep their funds safely.

...

Yes that is as of 4+ years ago so who knows what has changed since then, but in theory people still have access to their crypto.

I do not recall seeing any option for viewing private keys when I used the site (a year before that guy posted). Definitely no seed phrase either. It was username/password driven.

DaveF

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Quote from: NotATether on August 03, 2024, 09:59:41 AM

.....
edit: Oh, and everyone who still had coins in this custodial wallet has been rug-pulled by the feds.

Have not used it and don't know a thing about it, but from another thread about them getting taken down:

Quote from: Baki-crypto on May 21, 2020, 02:57:25 PM

...
Is Cryptonator Safe?

Some of the security features that the wallet offers are:
#1 Control Of The Private Keys
This feature allows you the complete control of your private keys from the onset. Thus, the coins are not vulnerable to theft. This gives power and surety in the user's hand, and the holders can take measures to keep their funds safely.

...

Yes that is as of 4+ years ago so who knows what has changed since then, but in theory people still have access to their crypto.

Now if people actually kept their seed / private keys who knows.
And we unless people complain we will never know if anything else changed about that.

But, in theory unless you were in the middle of an exchange you people still should have their money (this time).

-Dave

ABCbits

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I have doubt criminal would actually use custodial service, especially when it would leave trace and the platform receive some scam accusation.

Quote from: NotATether on August 03, 2024, 09:59:41 AM

edit: Oh, and everyone who still had coins in this custodial wallet has been rug-pulled by the feds.

And it's not the first time either. This case reminds me of BTC-e case which happened about a decade ago. And it's another reason to avoid custodial service.

Don Pedro Dinero

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I remember receiving my first signature campaign payments at an address there. Then, of course, I got better informed and ended up buying a hardware wallet, with which I could also sign messages to secure my account here. It was never a very famous site, nor was it much talked about, so I'm not surprised that many of you don't know about it. In any case, it's a pity.

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I've heard of them before, but never used. I doubt regulators shut it down over paperwork. No, taking down the whole operation implies Cryptonator enabled activities authorities deemed illegal. We can only speculate. But this mess confirms why self-custody beats trusting these mainstream platforms with unclear incentives or security standards.

Z-tight

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I am not going to lie, i am hearing the name 'cryptonator' for the first time. Checking online, this wallet functions just like an exchange, because one can exchange one crypto to another in it. The regulators are surely going to go after services like this which do not require kyc and charge them for money laundering, so no real surprises here.

Quote from: NotATether on August 03, 2024, 09:59:41 AM

edit: Oh, and everyone who still had coins in this custodial wallet has been rug-pulled by the feds.

True, you can put it that way. Anybdoy who has funds in a custodial wallet should know that they can lose it at anytime, not your keys, not your coins.

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Quote from: examplens on August 03, 2024, 05:05:01 PM

But why do people need to use a large number of different wallets? Isn't that just an unnecessary complication? Now there are already a lot of good multicurrency solutions, so the justification that some wallets do not support a certain coin or token is not adequate

The only other reason I can think of is those that chase newly launched projects which have their own custom wallet or are not listed on the top reputable wallets yet.
This is also the reason people use different exchanges when one or two realistically should be enough for all trading activities.

Poker Player

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Lol, I used it years ago too. For a short time, few transactions and low amount. Also when I was starting in this and still didn't have a HW. It was an online wallet without KYC, of which there are less and less left, in the end, to avoid the accusation of money laundering they are going to force KYC prior to using the site.

BitMaxz

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I heard cryptonator before but never used them we know that any online-related wallets are not safe, less secure and vulnerable to online attacks which is why I only use Electrum wallet and Bitcoin core and nothing else. For other cryptos, I use only the official wallets and the most common wallets like metamask and Ronin for web3.

Cryptonator looks the same as Coinbase the service they offer seems to be the same the only thing unique is the "Anonymous & secure" service which I think is the reason why it was taken down.
If it's just an AML/KYC policy, the government won't do that but to force them to collect data from their customers.

I hope other users will be cautious when choosing wallets or exchanges because almost all exchanges or wallets that can be used for money laundering are often targeted by the authorities.

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I have never heard of them

Quote from: NotATether on August 03, 2024, 09:59:41 AM

I guess this is pretty damning for anyone trying to host online wallet software. Anybody creating an online wallet is now treated like an exchange, and thus, a criminal. Something like this happened with Samourai before.

This is scary.
The thought that most online wallets are being used for shady activities will be like having a domino impact in eyes of the law enforcement. I guess this is an exchange of how freedom is to us and soon, even custodial or non custodial wallets might be forced to ask every user to do kyc.

examplens

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I have never used this wallet, but now I am glad it is so.

But why do people need to use a large number of different wallets? Isn't that just an unnecessary complication? Now there are already a lot of good multicurrency solutions, so the justification that some wallets do not support a certain coin or token is not adequate

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Quote from: Stalker22 on August 03, 2024, 03:57:30 PM

So Cryptonator got shut down as a custodial wallet. But was that because they held people's crypto like a bank? Or because they let folks trade it without oversight like an exchange? Seems like both and storing assets invites crime - we know this. But they took more risk enabling trades too, skirting laws.

This whole mess says to me regulations matter when handling other people's money. Cant just take risks and expect no blowback down the line. Cryptonator found out the hard way.

Yeah, should've just integrated known instant exchanges like other wallets and earn as an affiliate or something but they must've wanted more profits.

In addition, it appears the issue is more than just not complying to KYC/AML policies because they actually supported some shady services? 🤔

Quote

"Tickets also indicate that Cryptonator offers API keys to darknet marketplaces and the like, such as a bullet-proof hosting service, and a shop selling cached credentials for credit card companies," reads the complaint.

"Based on my training and experience, and in my investigation to date in this case, this is important b ecause it means that Cryptonator is offering its customers the ability to easily access criminal services."

LTU_btc

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I remember this name already from my early days in crypto, though, never used their services. So, as I understand that after mixers now feds started chasing crypto wallets. That's not good trend and I would say it's worrying.
It's said that ''Cryptonator, used by ransomware gangs, darknet marketplaces, and other illicit services'' - basically they can accuse every online wallet service which don't have KYC for such things.
That's another reason not to use custodial wallets, but now every person who used Cryptonator have lost it like all of them would be criminals.

Stalker22

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So Cryptonator got shut down as a custodial wallet. But was that because they held people's crypto like a bank? Or because they let folks trade it without oversight like an exchange? Seems like both and storing assets invites crime - we know this. But they took more risk enabling trades too, skirting laws.

This whole mess says to me regulations matter when handling other people's money. Cant just take risks and expect no blowback down the line. Cryptonator found out the hard way.

Topic: Cryptonator taken down (Read 254 times)