U.S. law enforcement authorities have shut down E-Note, a little-known cryptocurrency exchange accused of laundering over $70 million in illegal proceeds from ransomware attacks and online fraud.
The takedown, announced by the United States Attorney’s Office for the Eastern District of Michigan on Wednesday, followed a coordinated international operation involving the FBI, Michigan State Police, and law enforcement agencies in Germany and Finland. Investigators seized E-Note’s servers, mobile applications, and several associated websites, effectively shutting down the service.
“Since 2017, the FBI identified more than $70,000,000 of illicit proceeds of ransomware attacks and account takeovers transferred via E-Note payment service and money mule network, including laundered funds stolen or extorted from U.S. victims,” the Justice Department said, noting that targets included organizations in the healthcare sector and critical infrastructure.
Russian National Charged
Alongside the seizure, federal prosecutors also unsealed an indictment against Mykhalio Petrovich Chudnovets, a 39-year-old Russian national accused of operating and controlling E-Note. He is charged with one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison.
Court documents allege that Chudnovets began offering money laundering services to cybercriminals as early as 2010. What reportedly started as a small, hands-on operation using individual intermediaries later evolved into a more scalable online service. By around 2017, prosecutors say, those services were formalized under the E-Note brand, allowing criminals to move funds across borders and convert cryptocurrency into various cash currencies.
Authorities have not stated whether Chudnovets is currently in custody, and no arrests have been reported to date. As with all criminal cases, he is presumed innocent unless proven guilty in court beyond a reasonable doubt.
Servers, Apps, And Data Seized
As part of the operation, U.S. and international law enforcement seized servers hosting Chudnovets’ operations, mobile applications, and the websites “e-note.com,” “e-note.ws,” and “jabb.mn.” Investigators also obtained earlier copies of E-Note’s servers, including customer databases and transaction records.
Officials said the seized databases could help identify additional users of the service and map larger money-laundering ecosystems connected to ransomware and digital fraud.
Investigators noted that some illegal services deliberately rely on mobile apps and alternative platforms to reduce their visibility and make it harder for authorities to trace activity.
International Cooperation
The Justice Department credited close cooperation with international partners for the success of the operation, including the German Federal Criminal Police Office and the Finnish National Bureau of Investigation, as well as Michigan State Police and the state’s Cyber Command Center.
The FBI is encouraging anyone who believes their funds may have been laundered through E-Note to contact law enforcement directly at [email protected].
