The United States Attorney’s Office for the Eastern District of Michigan announced a coordinated international enforcement action targeting E-Note, a cryptocurrency exchange allegedly used by transnational cybercriminals to launder money stolen from U.S. healthcare providers and critical infrastructure operators.
The operation, conducted with Michigan State Police and international partners, dismantled the online infrastructure supporting the illicit payment service.
Since 2017, the FBI identified more than $70 million in ransomware proceeds and funds from account takeover attacks transferred through E-Note’s money laundering network.
Authorities unsealed an indictment against Mykhalio Petrovich Chudnovets, 39, a Russian national, charging him with money laundering conspiracy.
Court documents reveal that Chudnovets began operating money laundering services for cybercriminals in 2010, eventually establishing E-Note as his primary vehicle for criminal operations.
“Chudnovets worked directly with financially motivated cyber criminals to move criminal proceeds across international borders and convert cryptocurrency into fiat currency,” prosecutors stated in court filings.
Through E-Note, he facilitated the conversion of illicit cryptocurrency holdings into cash, enabling criminals to profit from their attacks.
As part of the enforcement action, U.S. law enforcement seized servers, mobile applications, and the associated domains including e-note.com, e-note.ws, and jabb.mn.
Authorities also obtained copies of Chudnovets’ server infrastructure, including customer databases and complete transaction records, which may help identify additional victims and criminal networks.
The money laundering conspiracy charge carries a maximum 20-year prison sentence. The case is being prosecuted by Assistant U.S. Attorney Timothy Wyse and investigated by the FBI Detroit Cyber Task Force.
The operation benefited from critical cooperation between U.S. authorities and international partners, including the German Federal Criminal Police Office, the Finnish National Bureau of Investigation, and Michigan State Police’s Michigan Cyber Command Center.
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