The FBI E-Note cryptocurrency exchange takedown marks a major international law enforcement action against financial infrastructure allegedly used by transnational cybercriminal groups. The U.S. Department of Justice confirmed on Wednesday that the FBI, working with partners in Germany and Finland, disrupted and seized the online infrastructure of E-Note, a cryptocurrency exchange accused of laundering illicit funds linked to ransomware attacks and account takeovers.
According to the United States Attorney’s Office for the Eastern District of Michigan, the coordinated operation targeted websites and servers used to operate E-Note, which allegedly provided cash-out services for cybercriminals targeting U.S. healthcare organizations and critical infrastructure.
“The United States Attorney’s Office for the Eastern District of Michigan announced today a coordinated action with international partners and the Michigan State Police to disrupt and take down the online infrastructure used to operate E-Note, a cryptocurrency exchange that allegedly facilitated money laundering by transnational cyber-criminal organizations,” the Justice Department said.
E-Note Allegedly Laundered Over $70 Million in Illicit Funds
Investigators say the FBI E-Note cryptocurrency exchange takedown follows years of financial tracking by federal authorities. Since 2017, the FBI identified more than $70 million in illicit proceeds transferred through the E-Note payment service and its associated money mule network.
These funds were allegedly tied to ransomware attacks and account takeovers, including proceeds stolen or extorted from victims in the United States.
“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,” the DOJ stated.
Authorities believe the exchange played a key role in converting cryptocurrency into various cash currencies, allowing cybercriminals to move funds across international borders while avoiding detection.
Russian National Charged in Money Laundering Conspiracy
As part of the operation, U.S. prosecutors unsealed an indictment against Mykhalio Petrovich Chudnovets, a 39-year-old Russian national. Chudnovets is charged with one count of conspiracy to launder monetary instruments, an offense that carries a maximum sentence of 20 years in prison.
According to court documents, Chudnovets began offering money laundering services to cybercriminals as early as 2010. Prosecutors allege that he controlled and operated the E-Note payment processing service until law enforcement seized its infrastructure.
“Until this seizure by law enforcement, Chudnovets offered money laundering services via the E-Note payment processing service, which he controlled and operated,” the DOJ said.
Investigators allege that Chudnovets worked closely with financially motivated cybercriminals to transfer criminal proceeds internationally and convert cryptocurrency into cash.
Servers, Websites, and Apps Seized in Coordinated Action
During the FBI E-Note cryptocurrency exchange takedown, U.S. and international authorities seized servers hosting the operation, as well as related mobile applications. Law enforcement also took control of the websites “e-note.com,” “e-note.ws,” and “jabb.mn.”
U.S. authorities separately obtained earlier copies of Chudnovets’ servers, which included customer databases and transaction records, providing investigators with detailed insight into the alleged laundering activity.
The Justice Department confirmed that the action was carried out with support from the German Federal Criminal Police Office, the Finnish National Bureau of Investigation, and the Michigan State Police Michigan Cyber Command Center (MC3).
Investigation Led by FBI Detroit Cyber Task Force
The case is being investigated by the FBI Detroit Cyber Task Force, with Assistant U.S. Attorney Timothy Wyse prosecuting. The announcement was made jointly by United States Attorney Jerome F. Gorgon, Jr. and Jennifer Runyan, Special Agent in Charge of the FBI’s Detroit Division.
Authorities emphasized that individuals who believe their funds were laundered through E-Note should contact law enforcement.
“Any individual who believes he/she is a victim whose funds were laundered through Chudnovets should reach out to law enforcement via email address [email protected],” the DOJ said.
The Justice Department also noted that the indictment remains an allegation.
“An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.”