Federal prosecutors have taken action against one of the largest alleged money laundering operations tied to ransomware and cybercrime, targeting E-Note, a cryptocurrency-focused exchange and payment service. This intervention is the result of a joint investigation including the U.S. Attorney’s Office for the Eastern District of Michigan, Michigan State Police, and international law enforcement. With millions of dollars allegedly laundered through digital assets, authorities hope this step will slow cybercriminal networks seeking to profit off stolen or extorted funds. The move focuses attention on the growing intersection of cybercrime, critical infrastructure vulnerability, and digital financial platforms.
Law enforcement agencies around the world have disrupted illegal cryptocurrency operations before, but this case draws attention due to the scale and structure of E-Note’s activities. Previous enforcement actions—such as those targeting BTC-e or Hydra Market—focused on either broader darknet marketplaces or cryptocurrency exchanges serving anonymous users. In contrast, E-Note is specifically accused of creating dedicated technology for the laundering of ransomware proceeds, signaling a trend where criminal infrastructure becomes increasingly specialized and harder to track.
Who Faces Charges in the Case?
The U.S. indictment names Mykhalio Petrovich Chudnovets, a Russian national, as the principal operator behind E-Note. According to officials, Chudnovets started with individual money-mule schemes before transitioning to a scalable online payment system. His timeline of involvement runs from 2010 through at least 2025, highlighting a long-term pattern of adapting to cybercriminal needs. The indictment alleges a “conspiracy to launder monetary instruments,” with a maximum penalty of 20 years imprisonment if convicted. The authorities have not confirmed his arrest or extradition status, stating:
“At this time, it is not confirmed that Mr. Chudnovets is in U.S. custody.”
How Was E-Note Used by Criminal Networks?
Federal investigators assert that E-Note operated as a streamlined service supporting the rapid, anonymous transfer of ransomware and cybercrime-related funds. More than $70 million in illicit proceeds, traced to attacks on sectors such as health care and critical infrastructure, reportedly moved through E-Note’s channels since 2017. By providing both a cryptocurrency exchange and payment processing, E-Note reduced barriers for criminals moving funds across international borders. The operation extended beyond one website, using domains like “e-note.com” and “jabb.mn,” further complicating efforts to establish accountability.
What Did Law Enforcement Seize in the Operation?
The coordinated takedown involved seizing multiple online assets linked to E-Note, including web servers, mobile applications, and associated customer databases. Authorities highlighted that acquiring earlier copies of E-Note’s server data has positioned them to analyze historic transaction records and possibly uncover broader networks of customers and accomplices. It is anticipated that this data will assist ongoing efforts to track financial flows originating from ransomware threats. U.S. agencies credited cooperation from international law enforcement, including Germany and Finland, in executing the operation. The FBI stated:
“We have identified over $70 million in illegal transfers facilitated by the E-Note service.”
Targeting cryptocurrency-based money laundering platforms like E-Note demonstrates law enforcement’s increasing sophistication in tracing illicit funds in the digital age. Specialized services enable cybercriminals to efficiently move and obscure proceeds from ransomware, raising challenges for investigators and victims alike. By analyzing data gathered during these seizures, authorities aim to identify trends and networks that support persistent cyber threats. For those involved in compliance, technology, or security, the case illustrates the ongoing tension between privacy, innovation, and misuse in digital finance. Staying alert to how illicit funds are moved and identifying new laundering tactics remains a crucial strategy for those hoping to counter ransomware and broader cybercrime risks.
