FBI shuts down E-Note money laundering service, charges Russian operator in Michigan
The FBI seized E-Note, an illicit crypto exchange and money mule network, on Thursday, also indicting the Russian cybercriminal accused of running the operations since 2010.
Authorities say the decades-old dark web payment service had been used to launder at least $70 million in illegal funds, dating back to 2017, much of it from ransomware attack proceeds targeting US victims in the healthcare and critical infrastructure sectors.
Along with the seizure of E-Note’s online infrastructure and several servers on Thursday, the US Department of Justice (DoJ) announced charges against the alleged mastermind of the crypto exchange and laundering operation – 39-year-old Russian national Mykhalio Petrovich Chudnovets.
According to the DoJ, Chudnovets provided a critical "cashout" function, enabling hackers to convert cryptocurrency proceeds into cash and to transfer the ill-gotten funds across international borders.
As part of the takedown operation, servers hosting the E-Note operations were confiscated, along with mobile applications and several websites, including “e-note.com,” “e-note.ws,” and “jabb.mn.”
Earlier copies of Chudnovets’ servers, including customer databases and transaction records, were said to have been obtained earlier by US law enforcement.
Chudnovets allegedly controlled and operated the E-Note payment processing service since its inception in 2010, working directly with international cybercriminal cartels to launder the cryptocurrency earned from ransomware attacks and account takeovers.
The US Attorney's Office has charged Chudnovets, who is not in custody, with one count of conspiracy to launder monetary instruments. If caught and convicted, he faces a maximum 20 years in prison.
The FBI Detroit Cyber Task Force led the case in coordination with the Michigan State Police, the German Federal Criminal Police Office, and the Finnish National Bureau of Investigation.
The DoJ is urging anyone who believes they may have been victimized as part of the E-Note laundering scheme to contact law enforcement directly via email.
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