FBI Dismantles Cryptocurrency Exchange Used by Threat Actors for Money Laundering

In a blow to transnational cybercrime, the Federal Bureau of Investigation (FBI), working alongside international law enforcement partners, has dismantled the infrastructure of “E-Note,” a notorious cryptocurrency exchange.

Authorities allege that the platform was a critical financial hub for cybercriminals, having laundered over $70 million in illicit funds since 2017.

The operation, announced Wednesday by the U.S. Attorney’s Office for the Eastern District of Michigan, resulted in the seizure of key servers, mobile applications, and multiple domains, including “e-note.com” and “e-note.ws.”

These platforms were reportedly used to “cash out” proceeds from ransomware attacks, account takeovers, and other fraud schemes targeting U.S. healthcare systems and critical infrastructure.

The Man Behind the Screen

At the center of the indictment is 39-year-old Russian national Mykhalio Petrovich Chudnovets.

According to court documents unsealed in Detroit, Chudnovets is charged with conspiracy to launder monetary instruments, a crime punishable by up to 20 years in federal prison.

Prosecutors allege that Chudnovets has been facilitating money laundering for cybercriminals since as far back as 2010.

Through his control of the E-Note payment processing service, he allegedly helped financially motivated hacker groups transfer stolen money across international borders.

The service specializes in converting cryptocurrency, often the preferred payment method for ransomware demands, into various traditional cash currencies, effectively “cleaning” the dirty money for criminal use.

A Coordinated Global Strike

This takedown was not a solo effort. The operation involved close coordination between the FBI’s Detroit Cyber Task Force and the Michigan State Police, along with critical support from the German Federal Criminal Police Office and the Finnish National Bureau of Investigation.

During the operation, law enforcement seized the servers hosting Chudnovets’ operations. Crucially, U.S. authorities also obtained historical copies of E-Note’s servers, which contain customer databases and detailed transaction records.

This data could prove invaluable in identifying other cybercriminals who used the service to hide their tracks.

United States Attorney Jerome F. Gorgon, Jr. emphasized the disruption this causes to the cybercrime ecosystem.

By removing easy avenues for criminals to liquidate their stolen funds, law enforcement aims to reduce the profitability of ransomware and digital extortion.

The FBI is now reaching out to potential victims. Since E-Note was used to launder funds stolen from U.S. victims, authorities believe many individuals and organizations may have had their stolen assets funneled through this service.

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